Celadon says 1Q net income down 64.8%

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Celadon Group on Wednesday, Oct. 25, reported its financial and operating results for the three months ended Sept. 30, the first fiscal quarter of the company’s fiscal year ending June 30, 2008.

Revenue for the quarter increased 4.8 percent to $133.8 million in the 2007 quarter from $127.7 million in the 2006 quarter. Freight revenue, which excludes fuel surcharges, was up 5.8 percent to $113.9 million in the 2007 quarter from $107.7 million in the 2006 quarter. Net income decreased 64.8 percent to $2.5 million in the 2007 quarter from $7.1 million for the same quarter last year.

“We remain committed to our long-term strategy, which is based on growth through success in attracting and retaining safe, experienced drivers, both internally and through acquiring the assets of underperforming companies,” said Steve Russell, chairman and chief executive officer of Indianapolis-based Celadon.

Russell said Celadon’s board of directors on Wednesday, Oct. 24, authorized a stock repurchase program under which the company has the ability to purchase up to two million shares in open market or negotiated transactions through Oct. 31, 2008. “At recent stock prices and applicable interest rates, repurchasing our shares would be accretive to earnings, and we believe repurchasing our shares offers a potentially attractive use of capital,” Russell said. “Celadon remains very well-positioned to weather what we view as a temporary economic low point.”