The parent company to trucking operations Covenant Transport and others has issued expectations for its upcoming third quarter financial results.
Covenant Transportation Group expects to report consolidated net income of 5 cents to 11 cents per share compared to third quarter 2013 net income of 13 cents per share.
These expected results include the additional reserve for a cargo claim of 29 cents to 33 cents per share related to a near $6 million judgment against the company regarding a 2008 cargo claim that it announced earlier this month, according to the compamy. On a non-adjusted basis, it expect to report consolidated net income in a range of 35 cents to 40 cents per diluted share.
"During July and August, we experienced a significant increase in demand, particularly in our expedited team-driver operations, which supported higher than expected freight revenue per mile, excluding fuel surcharge revenue, and miles per tractor,” said Chairman, President and Chief Executive Officer David R. Parker. “Although not at the levels of August, we have continued to experience strong freight demand thus far in September for our service offerings. In addition, our fleet had grown to 2,614 trucks at the end of August, a 50-truck increase from our reported fleet size of 2,564 trucks at the end of June."
CTG plans to release its third quarter earnings on Oct. 21.