Net earnings for Motor Cargo Industries Inc., Salt Lake City, were up for the fourth quarter of 1999 but dropped over 19 percent for the year.
Operating revenues for the three
months ended Dec. 31, 1999 increased 5.1 percent to $31.6 million compared to $30.1 million for the corresponding quarter of 1998. Net earnings increased 2 percent to $1.3 million for the quarter, compared to $1.3 million for the same period in 1998.
For the year ended Dec. 31, 1999, revenues increased 9.2 percent to $125.3 million, compared to $114.7 million for 1998. Net earnings decreased to $4.7 million, compared to $5.8 million for 1998.
An aggressive account rationalization process in the fourth quarter helped the company to identify numerous accounts that were not meeting acceptable profit margins. The fleet applied
appropriate rate adjustments to these accounts and eliminated accounts that could not be adjusted to provide acceptable margins. The result was a significant improvement in tonnage yield and profitability.