Celadon says 2Q net income down 72%

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Celadon Group Inc. on Wednesday, Jan. 23, reported its financial and operating results for the three and six months ended Dec. 31, the second fiscal quarter of the Indianapolis-based company’s fiscal year ending June 30.

Revenue for the quarter increased 13 percent to $138.6 million in the 2007 quarter from $122.9 million in the 2006 quarter. Freight revenue, which excludes fuel surcharges, was up 7 percent to $114.5 million in the 2007 quarter from $107.5 million in the 2006 quarter. Net income decreased 72 percent to $1.7 million in the 2007 quarter from $6.1 million for the same quarter last year.

For the six months ended Dec. 31, revenue increased 9 percent to $272.4 million in 2007 from $250.6 million for the same period last year. Freight revenue was up 6 percent to $228.4 million in 2007 from $215.1 million for the same period last year. Net income decreased 68 percent to $4.2 million in 2007 from $13.2 million for the same period last year.

“Despite a very difficult freight environment that is affecting our entire industry, 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, Celadon chairman and chief executive officer. “We believe that certain aspects of our performance in the December 2007 quarter are beginning to reflect the success of our approach.”

Russell said a variety of somewhat atypical costs also affected Celadon’s results for the quarter. “Various claims costs, fluctuations in the exchange rate for the Canadian dollar, and a change in effective tax rate due to nondeductible per diem payments to our drivers all combined for a negative impact of approximately eight cents per share,” he said. “Looking forward, we are confident in Celadon’s strength, liquidity and position in the industry. We believe our strategic growth plan is sound and that we have the team to execute it.”