Indianapolis-based Celadon Group Inc. said operating revenue for the first quarter increased 8.9%, to $98.8 million from $90.7 million for the same quarter last year.

Net income increased 180%, to $1.4 million from $0.5 million for the same quarter last year.
For the nine months, revenue increased 6.0%, to $291.6 million from $275.1 million in the same period last year. Chairman and CEO Steve Russell commented on the quarter: "We were pleased with the results of the quarter. A strong freight environment and disciplined execution of our strategic plan more than offset a severe winter, high fuel prices, and heightened competition for drivers. Our strategy of improving our freight mix by replacing lower yielding freight with more profitable freight, diversifying our customer base, successfully integrating acquired operations, upgrading our equipment fleet, and emphasizing discipline in all aspects of our operations continued to generate improvements compared with the same quarter last fiscal year."
He said average revenue per tractor per week – the firm’s main measure of asset productivity -- improved 7.4%, to $2,696, as a result of higher rates per mile and miles per tractor.
"The average age of our tractor fleet decreased to 2.3 years at March 31, 2004, from 2.75 years at March 31, 2003, contributing to lower maintenance costs and better fuel mileage.
Russell said the new federal hours of service regulations had a minimal impact on the quarter. "Our average length of haul and low percentage of loads with in-transit stops caused the new rules to impact our operations less than some other carriers. Through advanced preparation with our customers, we were able to negotiate compensation for those loads that unduly affected the productivity of our drivers and equipment."