Heartland Express saw increased revenue and earnings per share in the second quarter, but operating revenues dropped as a result of a reduction in fuel surcharge revenues and the economic downturn.


"This extended economic downturn is the worst experienced in the history of our company," the company said in a press release. "There continues to be excess capacity in our industry combined with the continued decline in available freight, resulting in extreme pressure on freight rates. The company has not seen any strong indicators of improvements in the demand for freight services that would increase our levels of business in the near future."

Despite that grim assessment, second-quarter earnings per share jumped 5.6 percent to 19 cents from 18 cents in the same quarter of 2008. Net income was boosted 2.2 percent, landing at $17.6 million, compared with $17.2 million in the 2008 period. Over the first six months of 2009, earnings per share were favorable, increasing 6.1 percent from 2008. Net income for the same period was down 0.4 percent to $31.8 million from $31.9 million in 2008.

Meanwhile, operating revenues slid 28.9 percent to $117 million, while the same period in 2008 saw $164.6 million. For the six months ending June 30, operating revenue was down 26 percent to $232 million, from $313.6 million in the first six months of 2008.

The company's fuel cost per mile declined 48.1 percent and 47.5 percent for the quarter and six-month periods ending June 30, respectively. The carrier is working hard to control fuel costs by focusing on idle hour reductions, terminal fuel purchases, strategic over-the-road purchases, and the purchase of International Pro Star trucks with increased fuel economy. During the second quarter, the U.S. average cost of fuel was $2.34 per gallon compared to $4.42 for the 2008 period.

For the quarter, Heartland Express posted an operating ratio (operating expenses as a percentage of operating revenues) of 81.4 percent and a 15.1 percent net margin (net income as a percentage of operating revenues) compared to 87.3 percent and 10.5 percent for the same period of 2008. The company reported an operating ratio of 82.4 percent and a 13.7 percent net margin for the six months ended June 30, 2008 compared to 87 percent and 10.2 percent for the same period of 2008.

Heartland added 416 new tractors in the second quarter as well as 45 in the first quarter. The fleet now includes the purchase of 1,036 International ProStar tractors.