Truckload giant Swift Transportation Co. (SWFT) increased its second quarter profit by more than 20% from a year ago despite an overall downturn in revenue, according to figures it released Monday.
Net profit climbed to $51 million from $40.2 million a year earlier, or to 35 cents per diluted share from 28 cents per diluted share, for the Phoenix, Ariz.-based carrier.
This happened as overall revenue fell to $1.059 billion from $1.075 billion; however, revenue excluding fuel charges increased to $935.9 million from $876.3 million.
In Swift's truckload business, revenue minus fuel surcharges for the second quarter increased 5.7% over the same quarter in 2014 to $485.4 million.
It said this revenue growth was the result of a 4.9% year-over-year increase in revenue excluding fuel surcharge per loaded mile and a 0.8% increase in total loaded miles driven within the period. Also weekly revenue minus fuel surcharge revenue per tractor increased 3.4% year over year to $3,571. That was partially offset by a 1.5% decrease in loaded miles per tractor per week.
The company’s dedicated trucking business saw revenue minus fuel surcharge grow 15.1% to $211 million in the second quarter of 2015 from a year earlier.
“This growth was driven by the various new contracts awarded over the last 12 months, which also drove the 9.8% increase in our average operational truck count year-over-year,” said Swift in its letter to shareholders. “Weekly revenue minus fuel surcharge per tractor increased 4.8% to $3,343 due to improved operational fundamentals, including pricing, utilization and deadhead.”
In the company’s Central Refrigerated Service business, revenue excluding fuel surcharge dropped 3.1% to $83.3 million, primarily driven by a 3.7% reduction in revenue minus fuel surcharge per loaded mile. That was partially offset by a 0.6% increase in total loaded miles driven within the period, according to Swift.
Finally, Swift’s intermodal segment saw revenue less fuel surcharge grow by 5% to $84.8 million, driven by a 7.2% increase in load counts. Container on flat car loads (COFC) increased 14.6%, while trailer on flat car (TOFC) loads decreased 65.4%, primarily due to the elimination of the refrigerated this business. Revenue minus fuel surcharge per load decreased 2% in the second quarter of 2015 from the same period of 2014, primarily due to the mix shift to COFC from TOFC, according to Swift.
More information is on the Swift Transportation website.