Celadon enjoys another quarter of record net income

user-gravatar

Celadon Group reported Tuesday, Oct. 25 its revenue for the quarter increased 12.9 percent to $117.9 million in the 2005 quarter from $104.4 million in the 2004 quarter. Freight revenue, which excludes fuel surcharges, was up 5.3 percent to $103.3 million in the 2005 quarter from $98.1 million in the 2004 quarter.

Net income increased 67.9 percent to $4.7 million in the 2005 quarter from $2.8 million for the same quarter last year. Diluted earnings per share improved by 66.7 percent to $0.45 in the 2005 quarter from $0.27 for the same quarter last year.

The September quarter — the first fiscal quarter of the company’s fiscal year ending June 30, 2006 — marked the highest earnings per share in the history of the company, says Steve Russell, chairman and CEO of Indianapolis-based Celadon.

“The September quarter reflected accelerating profitability through improved freight mix, higher average freight revenue per mile, lower maintenance costs as a consequence of reduced average age of equipment and continued success in driver retention,” Russell says. “Freight demand was good during the quarter. In addition, we believe industry capacity continues to be constrained by the ongoing driver shortage, as well as by the financial constraints that high fuel prices place on many small to mid-sized carriers that lack buying power and adequate fuel surcharge programs.”