The first quarter of 2011 saw strong revenue and profit increases for many carriers. However, the good results were tempered by bad weather and the spike in fuel prices. On the whole, fleets expect business to continue increasing through the remainder of 2011.


Revenue rose around 10 percent for most major carriers. Heartland Express reported a 10.4 percent increase in revenue over the first quarter of 2010. Revenues at Marten and Knight increased 9.6 percent and 12.5 percent respectively. USA Truck saw an 11.7 percent revenue increase, Swift saw 15.9 percent, Landstar saw 4.4 percent and ABF had 19 percent.

On the higher end, Old Dominion Freight Line, a primarily less-than-truckload company, posted a revenue increase of 33 percent over the first quarter of 2010, which was driven mainly by a 20.9 percent increase in shipments, both of which are the highest comparative quarterly increases achieved since going public in 1991. On the lower end, freight revenue for Covenant Transportation Group decreased 3.8 percent over the first quarter of 2010, giving the company an alarming operating ratio of 99.8 percent.

As to be expected with the revenue increases, profits and earnings per share also rose for many carriers, but not all. Heartland's EPS increased 23.1 percent, Marten 5 percent, Landstar 26 percent. Swift posted a net income of $3.2 million, or two cents per share, after losing $53 million, or 88 cents per share, in the first quarter of 2010. Old Dominion, the biggest winner by far, posted a year-over-year profit increase of 180.1 percent to $21.6 million, an EPS increase of 171.4 percent.

Despite its increase in revenue, Knight's net income fell 20 percent year over year to $9.9 million, losing 2 cents earnings per share. The decrease is due not only to high fuel prices and bad weather, but to unexpectedly low shipping volumes in the west. However, Peter Nesvold, transportation analyst with investment banking Jefferies & Co., said that all things considered, Knight is quite healthy.

At least three companies posted net losses. USA Truck lost $2.7 million, 26 cents per share, slightly better than Q1 2010 losses of 29 cents per share. Covenant Transportation posted a net loss of $2.5 million dollars, 17 cents per share, a bigger loss than the first quarter of 2010, which was $2.2 million, or 15 cents per share. ABF, another LTL player, posted a loss of $12.8 million, 51 cents per share, up from Q1 2010 losses of $21.4 million, or 85 cents per share.

Across the board, gains were less than expected, owing to high fuel prices, which increased 27 percent in the first quarter, and the remarkably harsh winter season. While diesel fuel is expected to stay high, the outlook for the remainder of 2011 is positive, with shipping continuing to increase. Rates are also expected to rise as capacity tightens from increased shipping volume.