Marten Transport says 2Q revenue up, income down

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Marten Transport announced Monday, July 23, its financial and operating results for the quarter ended June 30. Operating revenue, consisting of revenue from truckload and logistics operations, increased 5.3 percent to $138.8 million in the second quarter of 2007 from $131.9 million in the 2006 quarter. For the six-month period of 2007, operating revenue increased 7.5 percent to $270.2 million from $251.4 million for the 2006 period.

Truckload revenue increased 1.2 percent to $123.7 million from $122.2 million in the 2006 quarter. For the six-month period of 2007, truckload revenue increased 2.9 percent to $241.9 million from $235.1 million for the 2006 period. Logistics revenue, which consists of revenue from brokerage and intermodal operations, increased 57 percent to $15.1 million from $9.6 million in the 2006 quarter. For the six-month period of 2007, logistics revenue increased 74 percent to $28.4 million from $16.3 million for the 2006 period.

Operating revenue included fuel surcharges of $21.1 million and $38.5 million for the second quarter and six-month period of 2007, compared with $20.9 million and $36.9 million for the second quarter and six-month period of 2006. Operating revenue, net of fuel surcharges, increased 6.1 percent to $117.7 million in the 2007 quarter and 8.0 percent to $231.7 million in the 2007 six-month period.

For the second quarter ended June 30, net income decreased to $4.3 million from $7.5 million for the same quarter of 2006. For the six-month period of 2007, net income decreased to $8.9 million from $12.6 million for the 2006 period. The second quarter and six-month period of 2006 included a one-time tax benefit of about $875,000.

“During the quarter, we continued to execute our program of providing excellent service to our customers with moderate fleet growth,” said Randolph L. Marten, chairman, president and chief executive officer of the Mondovi, Wis.-based company. “The freight environment was challenging, however, which caused downward pressure on freight rates, fewer miles per tractor and increased nonrevenue miles.”

Looking forward at the balance of 2007, Marten said the company’s long-term goal is to grow revenue and earnings at about a 10 percent compounded annual rate. “Over the past several years, our revenue has grown somewhat less than 10 percent, and our earnings per share have grown in excess of 13 percent,” he said. “Under the current freight environment, we expect continued growth, yet difficulty for the remainder of 2007 in reaching double-digit revenue growth or improved earnings per share versus the second half of 2006.”