LTL First Quarter Results Mixed
Three less-than-truckload carriers reporting first quarter financial results last week showed results ranging from record profits to net income slashed by more than half
Three less-than-truckload carriers reporting first quarter financial results last week showed results ranging from record profits to net income slashed by more than half.
Motor Cargo Industries, a regional LTL based in Salt Lake City, showed a 74% increase in net earnings on an 8% increase in revenue, its second quarter of record profits in row.
Operating revenue increased 8.3% to $32.9 million, compared to $30.4 million for the corresponding quarter of 2000. Net earnings increased 74% to $1.2 million, compared to earnings of $672,000 for the same period in 2000.
Much of the growth came from the company's third-party logistics and distribution unit, MC Distribution Services, which contributed revenues of $1.4 million during the quarter, compared to $1.1 million the year before, a growth rate of 27%.
Hal Tate, chairman and CEO, said the 75-year-old company has worked to increase revenue, control costs, re-emphasize safety and training to reduce accidents and claims, and reallocated management responsibilities.
Old Dominion Freight Line, High Point, N.C., saw its net income cut by more than half. Revenue for the first quarter was $120.3 million, a 6.6% increase from $112.8 million for the first quarter of 2000. Net income decreased to $1 million, down from $2.4 million the year before.
Company officials attributed the results primarily to the slowing economy. The company also incurred higher short-term costs due to the integration of the operations of Carter & Sons Freightways, which it acquired during the first quarter and which was primarily accountable for the growth in revenue for the quarter.
Overnite Transportation, Richmond, Va., saw both revenues and net income rise. The company reported first quarter revenue of $280 million, up 4% from the same period last year, and a significant increase in net income to $7.9 million.
Expanding its western operations in 2001, Overnite opened two new California service centers in the first quarter, with further expansions slated in California's San Fernando Valley, Albuquerque, N.M., and Rolla, Mo.
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