On the upside, Landstar, Celadon, Knight and UPS all reported increases in both revenue and earnings.
Landstar brought in $29.6 million, or 62 cents per diluted share, compared to net income of $24.4 million, or 49 cents per diluted share, for the 2010 second quarter: a 17.5% increase. The company's earnings per diluted share set a new record for the second quarter. Total revenues rose from $641.7 million in the 2010 second quarter to $675.6 million. The operating margin also increasing to 43.6% from 38.2% a year ago.
Celadon's revenue for the quarter increased 6.3% to $147.7 million in the 2011 quarter from $139.0 million in the 2010 quarter. Freight revenue, which excludes fuel surcharges, decreased 1.2% to $115.3 million in the 2011 quarter from $116.7 million in the 2010 quarter. Net income increased to $5.5 million in the 2011 quarter from $2.7 million over Q2 2010. Earnings per diluted share doubled to $0.24 in the 2011 quarter over the same quarter last year. According to chairman and CEO Steve Russell, it was Celadon's best June quarter since 2006. The operating margin increased from 4.8% to 8.1%.
Knight Transportation's total revenue increased 23.2% to $228.5 million from $185.4 million for the same quarter of 2010. Revenue before trucking fuel surcharge increased 17.4% to $182.4 million compared to $155.3 million in the second quarter of 2010. Net income increased to $16.4 million in the second quarter from $15.8 million for the same quarter of 2010, a 3.3% increase. Net income per diluted share increased 4.7% to $0.20 compared to $0.19 for the same quarter of 2010.
UPS posted great numbers for the quarter, with earnings per diluted share increasing 25% from Q2 2010 to $1.05, and total revenue increasing 8.1% to $13.2 billion. On an adjusted basis, U.S. Domestic operating profit increased 31%, while Supply Chain and Freight generated record operating profit of $187 million. Like Landstar, UPS delivered it's highest ever Q2 earnings per share.
Swift is also doing well, experiencing a healthy turnaround from losses this time last year. Swift's second-quarter net income was $19.6 million, or 14 cents a share, compared with a net loss of $23.1 million, or 38 cents a share, a year ago. Operating revenue rose 16% to $850.5 million, and excluding some items, profit was 18 cents a share. But while numbers were good, the results fell short of Wall Street expectations. Analysts on average had expected earnings of 19 cents a share on revenue of $849.1 million, according to Thomson Reuters.
Not all trucking operations are doing well across the board.
USA Truck posted a big increase in revenue, but also a significant drop in earnings. The company reported a base revenue of $108.5 million for the quarter, an increase of 14.3% from $94.9 million for the same quarter of 2010. However, net income was $0.6 million, six cents per share, for the quarter, compared to $0.9 million, nine cents per share, for the same quarter of 2010.
Covenant Transportation Group lost both earnings and revenue in Q2 2011 compared with Q2 2010. The company's freight revenue was $133.6 million, a decrease of 5.5% compared with the second quarter of 2010. The operating income of $7.2 million and the operating ratio of 94.6% was down compared with operating income of $10.0 million and an operating ratio of 92.9% in the second quarter of 2010. Covenant's net income of $1.7 million, or 11 cents per share, was down from $2.9 million, or 20 cents per share, in the second quarter of 2010.