The trucking operation Celadon Group Inc. (NYSE: CGI) on Thursday reported sharply lower earnings Thursday for both its fiscal fourth quarter and year-end results.

The Indiana-based fleet saw quarterly income fall 86.5% from the same time a year earlier to $1.6 million, or to 6 cents per share from 47 cents.

Revenue for the quarter was up 4.3% to $264.3 million, while freight revenue, which excludes fuel surcharges, increased 8.2% to $241.7 million. Operating income fell 74.7% to $5.4 million.

According to the company, the decline in net income and earnings per share for the quarter was attributable primarily to three factors. The largest was an approximately $7.8 million drop in gain on disposition of equipment. In addition, Celadon recorded insurance claim adjustments of approximately $3.5 million. Finally, the combination of industry overcapacity and sluggish freight volumes negatively affected its average revenue per loaded mile.

“The trucking environment during the June quarter was characterized by lackluster freight volumes, plentiful industry-wide capacity in most markets, and significant rate pressure from customers during contractual negotiations,” Celadon said in a news release. “These factors negatively impacted our average revenue per total mile by approximately 1% compared with the 2015 quarter, and average miles per seated tractor declined by approximately 2.4%.”

Celadon also said a 20% decline in spot market freight rates from a year earlier hurt its quarterly numbers.

Like several other trucking companies that recently announced quarterly numbers earlier, Celadon said it cut the size of its fleet, shedding 274 trucks, or 5.4% compared from the previous quarter. However, the average company tractor count increased by 60 trucks to 3,258 from 3,198 in the same quarter of 2015.

For its 2016 fiscal year, ending June 30, Celadon reported net income dropped 33.2% from fiscal 2015 to $24.8 million. Earnings per share fell to 64 cents from $1.52.

Total revenue for fiscal 2016 increased 18.3% from fiscal 2015 to $1.07 billion, while freight revenue increased 25.8% to $968.7 million. Operating income dropped by 20.6% to $52.2 million for fiscal 2016.

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