Covenant Transportation Group posts 2Q net loss on higher revenue

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Covenant Transportation Group Inc. announced Tuesday, July 29, its financial and operating results for the quarter ended June 30. Total revenue increased 17.6 percent to $208.7 million from $177.4 million in the same quarter of 2007. Freight revenue, which excludes fuel surcharges, increased 6.2 percent to $160.5 million from $151.0 million. The company reported a net loss of $2.3 million compared to a net loss of $11.3 million.

“I am very proud of our management team for their effort and the operating results they achieved despite a significant rise in fuel prices and a strengthening, but far from robust, freight market,” said David Parker, chairman, president and chief executive officer of Chattanooga, Tenn.-based Covenant Transportation Group. “Although we are not satisfied with our financial performance, we are cautiously optimistic that the dedication of our employees and an improving freight market started to move us in the right direction during the second quarter.”

Parker said the company believes the freight market showed the first signs of improvement in nearly two years. “From our perspective, demand improved seasonally, but was not robust,” he said. “Industry-wide capacity seemed to grow a bit tighter as the quarter unfolded. … Evidence of an improving market was reflected in shipper comments indicating their concern about available capacity in certain markets.”