Universal Truckload says 3Q revenue, income both down

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Universal Truckload Services on Friday, Oct. 26, announced financial results for the 13 and 39 weeks ended Sept. 29.

For the 13 weeks, operating revenues decreased 0.1 percent, or $0.1 million, to $171.8 million from $171.9 million for the 13 weeks ended Sept. 30. Included in operating revenues are fuel surcharges of $16.0 million and $17.8 million for the third quarters of 2007 and 2006, respectively. Net income decreased 11.0 percent, or $0.6 million, to $5.1 million, from $5.8 million for the third quarter of 2006. Operating margin was 4.8 percent for the third quarter of 2007 compared to 5.3 percent for the third quarter of 2006.

Universal’s truckload revenue in the third quarter of 2007 increased by 2.1 percent to $101.6 million from $99.5 million in the corresponding period of 2006. Included in truckload revenue growth in the third quarter of 2007 is $2.1 million from acquisitions completed in the third quarter of 2006. Brokerage revenue in the third quarter of 2007 decreased by 8.5 percent to $42.8 million from $46.8 million in the corresponding period of 2006. Intermodal revenue in the third quarter of 2007 increased by 6.9 percent to $27.4 million from $25.6 million in the corresponding period of 2006. Included in intermodal revenue growth in the third quarter of 2007 is $0.7 million from acquisitions completed in the third quarter of 2006.

For the 39 weeks ended Sept. 29, operating revenues increased 6.5 percent, or $31.0 million, to $508.8 million from $477.8 million for the 39 weeks ended Sept. 30. Included in operating revenues are fuel surcharges of $47.6 million and $45.4 million for the first three quarters of 2007 and 2006, respectively. Net income decreased 17.1 percent, or $2.7 million, to $13.0 million, from $15.7 million through the third quarter of 2006.

Universal’s truckload revenue in the first three quarters of 2007 increased by 6.9 percent to $302.1 million from $282.7 million in the corresponding period of 2006. Included in truckload revenue growth in the first three quarters of 2007 is $16.5 million from acquisitions completed in the third quarter of 2006. Brokerage revenue in the first three quarters of 2007 increased by 0.5 percent to $126.9 million from $126.2 million in the corresponding period of 2006. Included in brokerage revenue growth in the first three quarters of 2007 is $3.1 million from acquisitions completed in the third quarter of 2006. Intermodal revenue in the first three quarters of 2007 increased by 16.0 percent to $79.9 million from $68.9 million in the corresponding period of 2006. Included in intermodal revenue growth in the first three quarters of 2007 is $5.9 million from acquisitions completed in the third quarter of 2006.

“While growth in the third quarter proved difficult in a challenging freight environment, our asset light model continues to demonstrate its value,” said Don Cochran, president and chief executive officer of Warren, Mich.-based Universal Truckload. “In this sluggish economy, it’s important that we continue to watch costs while seeking growth opportunities through acquisitions and new agents.”