Swift Transportation Co. Inc. reports net earnings were $45.5 million or 60 cents per share for the second quarter of 2006, compared to $29.8 million or 40 cents per share for the second quarter of 2005.

Operating revenues for the second quarter of 2006 increased 1.9 percent to $813.1 million compared with $798.3 million for the corresponding quarter of 2005. Excluding fuel surcharge revenue, net revenue of $686.2 million decreased 3.2 percent over the second quarter of 2005.
The decrease in revenue excluding fuel surcharge was primarily due to the reduction in the average linehaul tractors by 1,426 from the second quarter of 2005 to the second quarter of 2006, with the majority of this decrease in average linehaul tractors occurring in the last two quarters of 2005. The decrease in operating revenue resulting from the reduction in average linehaul tractors was partially offset by an increase in revenue per loaded mile. Revenue per loaded mile increased 3.8 percent to $1.6262 in the second quarter of 2006 from $1.5660 in the second quarter of 2005.
The company's operating ratio of 90.2 percent was an improvement of 270 basis points over the second quarter 2005.
The reduction in revenue excluding fuel surcharge was primarily a result of a decrease in the average linehaul tractors by 1,377 for the six months ended June 30, 2006, as compared to the six months ended June 30, 2005. The impact on operating revenue of the average linehaul tractors reduction was partially offset by the 4.1 percent increase in revenue per loaded mile. For the six months ended June 30, 2006, revenue per loaded mile was $1.6195 compared to $1.5562 for the six months ended June 30, 2005.
For the six months ended June 30, 2006, revenue per tractor per week was $3,049, up 4.3 percent from $2,922 for the six months ended June 30, 2005. The company achieved a 90.7 percent operating ratio for the six months ended June 30, 2006.
Despite achieving excellent results in the quarter, the company experienced many of the same challenges that face the industry as a whole, including the availability of drivers. The company received 1,098 new tractors in the quarter. Given the timing of receipt and the in-service requirements (installation of decals, in-cab communication devices, etc.) and a shortage of qualified drivers, the company had 489 units not yet placed in service at the end of the quarter. The company is actively exploring several alternatives to address the recruiting and retention of company drivers and owner operators. Recent changes to the owner-operator fuel reimbursement program where Swift absorbs all increases in fuel costs above a certain level, thus protecting the owner-operators from increases in fuel prices, is an example of the types of actions the company is taking. The company anticipates it will continue to face similar challenges in the second half of 2006.