Despite bottom-line losses, Smithway Motor Xpress Chairman, President and CEO William G. Smith said he’s encouraged by substantial progress on several fronts.

The Fort Dodge, Iowa-based truckload carrier posted second quarter losses of $1.2 million on revenue, excluding fuel surcharge, of $44.6 million, compared to a $384,000 profit on $49.9 million for second quarter 2001. For the first six months, losses total $3.2 million on revenues of $85.6 million compared to a loss of $1.7 million on $95.3 million a year ago.
The losses were attributed to a combination of tractors without drivers and weakness in Midwestern freight demands, especially in the steel and construction materials industries. Nevertheless, Smithway did see improvement in some key operating measures.
The company had previously announced its intention to improve revenue per seated tractor per week, which includes revenue per mile and miles per tractor. Second quarter results show a 1.3% increase over the same period last year, which Smith attributed to higher revenue per loaded mile in its van operation, where revenue per seated tractor rose 1%, and lower non-revenue miles in the flatbed and van operations.
“We believe the benefits of more disciplined freight selection and the management changes in our sales and operations areas are beginning to take effect,” he noted.
The number of tractors without drivers continues to be a weak spot for Smithway, but the company chose to concentrate first on improved safety and lower claims costs by tightening its hiring standards and turning away student drivers. “We believe this contributed to our lowest rate of accidents per million miles in five years,” Smith said. Smithway does plan to hire 50 “quality” drivers this year to fill unseated vehicles, but it will also dispose of another 50 unproductive trucks. To further trim costs, they’ve reduced non-driving personnel by 9%, eliminated their reliance on outside load finders, closed one terminal, and paid down debt in order to reduce interest expenses.
“These expense reductions will continue to benefit Smithway in future periods,” Smith noted. “Looking forward, we anticipate further improvements both from our efforts and as shipping demand in the Midwest picks up.”