Universal Truckload posts lower 2Q earnings, higher operating revenues

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Universal Truckload Services Inc. on Monday, July 28, announced financial results for the 13 and 26 weeks ended June 28.

Universal’s net income decreased 25.7 percent, or $1.2 million, to $3.5 million for the second quarter, from $4.7 million for the second quarter of 2007. Included in net income were $1.4 million of after-tax charges for other-than-temporary impairments of marketable equity securities classified as available for sale. Operating revenues increased 11.9 percent, or $21.2 million, to $199.4 million from $178.2 million. Included in operating revenues are fuel surcharges of $29.6 million and $17.8 million for the second quarters of 2008 and 2007, respectively. Operating margin was 3.9 percent compared to 4.2 percent.

For the 26 weeks ended June 28, operating revenues increased 9.6 percent, or $32.5 million, to $369.6 million from $337.1 million for the 26 weeks ended June 30, 2007. Included in operating revenues are fuel surcharges of $48.9 million and $31.6 million for the first two quarters of 2008 and 2007, respectively. Net income decreased 13.3 percent, or $1.1 million, to $6.8 million, from $7.9 million.

“Our second-quarter earnings were impacted by a charge due to writedowns in our stock portfolio, particularly from our holdings in the financial sector,” said Don Cochran, president and chief executive officer of Warren, Mich.-based Universal Truckload. “Excluding the impact of this charge, we had a positive second quarter. Recent acquisitions, decreasing industry truck capacity and improving load volumes all contributed to our positive operating results. Our operating results demonstrate the value of our asset-light model.”