Covenant Turns First Profit Since Late ’07

Covenant Transportation Group said late Wednesday it turned a profit in the second quarter, posting its best performance in several years.

Covenant earned $2.9 million, or 20 cents per share, compared with a loss of $3.1 million, or 22 cents, a year ago.

It was the truckload carrier’s first profit since the fourth quarter of 2007, Bloomberg reported.

Revenue rose 17.3%, to $169 million, while freight revenue excluding fuel surcharges improved 9.4% to $141.4 million.

“A favorable and strengthening freight market afforded us the opportunity to capitalize on our improved operations and increase equipment utilization,” Chairman and Chief Executive Officer David Parker said.

“In addition, we began to see the rate improvements that must come to sustain the long-term health of our industry,” he said in a statement.

Covenant Transportation Group is ranked No. 37 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.