SCS 3Q revenue up 11%

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SCS Transportation reported third-quarter net income of $7 million, up 7 percent from $6.6 million in the third quarter of 2004.

Revenues for the third quarter were $284.5 million, up 11 percent from $256.8 million in the third quarter of 2004. Consolidated operating income for the third quarter at $13.9 million was up 3 percent from the prior-year quarter.

The current-quarter and year-earlier operating results were subject to several unusual items, SCS said Wednesday, Oct. 26:

  • Hurricanes Katrina and Rita caused property damage and disrupted operations, which adversely impacted third-quarter consolidated results. The company has not completed an assessment of business interruption impact, and third-quarter results do not include an estimate of insurance recovery, which it anticipates in a future period.
  • Current-quarter results also include a charge of $0.8 million for executive severance costs.
  • Third-quarter 2004 results at subsidiary Jevic included a $1.9 million charge, which resulted from unfavourable development of prior-year workers’ compensation claims, partially offset by a $0.6 million gain on the sale of excess real estate.
  • “We achieved record consolidated revenues and earnings in the quarter, despite weather challenges in our historically important Gulf Coast markets,” says Bert Trucksess, chairman, president and chief executive officer of SCS. “We believe ongoing initiatives provide further opportunity for revenue and profitability improvements.”