Marten Transport announced Monday, Oct. 22, that third-quarter profit was down 54 percent due to weakened freight demand and higher costs.
Net income dropped to $3.1 million, down from $6.7 million a year earlier, according to the company. Revenue rose 7 percent to $145 million from $135.8 million, but costs outpaced that growth, the company said; operating costs rose 12 percent to $139.3 million from $124.1 million.
“Freight demand was less robust than usual during the third quarter, establishing a climate less conducive for volume growth or rate improvement,” said Randolph Marten, chief executive officer of the Mondovi, Wis.-based carrier. At the same time, fuel costs rose an average $2.83 per gallon from $2.79 per gallon.
The company said it also faced increased costs for supplies and maintenance as well as increased insurance claims from physical damage. Salary, wage and benefit costs also rose as a result of an increase in the number of miles driven, according to the company.