By Rip Watson, Senior Reporter This story appears in the Feb. 10 print edition of Transport Topics.
Three more truckload carriers reported weaker quarterly profits, citing higher costs, but Heartland Express posted improved results as earnings reports in the sector wound down last week.
Heartland, based in North Liberty, Iowa, raised its net income 11% to $15.8 million, or 18 cents per share, from $14.3 million, or 17 cents, reflecting the acquisition of Gordon Trucking Inc. late last year. Revenue increased 35% to $183.3 million.
Before the acquisition, Heartland ranked No. 47 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, while Gordon was No. 61.
Landstar System Inc., based in Jacksonville, Fla., reported fourth-quarter net income from continuing operations of $25.2 million, or 55 cents share compared with $32.9 million, or 71. Revenue increased 1% to $692 million.
The carrier ranks No. 9 on the for-hire TT100 list.
Celadon Group Inc. announced fiscal second-quarter net income declined to $5.1 million, or 22 cents, from $7.4 million, or 32 cents. Revenue rose 31% to $193.6 million.
The Indianapolis-based company ranks No. 44 on the for-hire TT100.
Patriot Transportation Holding Inc.’s fiscal first-quarter net income dipped 25% to $2.34 million, or 24 cents, from $3.1 million, or 33 cents. Revenue rose 19% to $31.6 million at the trucking unit — where profit before interest and taxes fell 19% to $1.46 million.
Patriot, also based in Jacksonville, Fla., said its costs rose because it added drivers.
Celadon’s revenue per loaded mile rose nearly 4%. Maintenance costs rose as the company added 720 more seated tractors, partly from acquired fleets with older trucks that had higher operating expenses.
It also said it’s adding drivers through recruiting and its new driving school.
“We believe these costs and future synergies related
to these transactions should benefit Celadon in future quarters,” CEO Paul Will said in a statement.
Landstar, benefiting from a gain on an asset sale, saw its net income rise to $59.6 million, or $1.30. Its truckloads rose 2.4%, but revenue per load fell about 1.5%.
CEO Henry Gerkens said the gross profit margin of 14.8% trailed expectations. He tied the margin pressure to a late 2013 freight surge.
Heartland said that expenses related to the $300 million acquisition of Gordon, based in Pacific, Wash., reduced earnings per share by 2 cents.
