P.A.M. Transportation posts 2Q net loss

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P.A.M. Transportation Services on Wednesday, July 30, reported a net loss of $1.33 million for the quarter ended June 30, and net loss of $4.16 million for the six-month period then ended. These results compare to net income of $2.19 million and $3.46 million for the respective same periods in 2007.

Operating revenues were $110.9 million for the second quarter, a 4.0 percent increase compared to $106.7 million during the same period last year. Operating revenues were $216.8 for the six-month period, a 5.5 percent increase compared to $205.5 million a year ago.

“Although our second quarter 2008 resulted in a loss, we experienced progressive improvement during the quarter in demand for our services, asset utilization and an incremental increase in rates per loaded mile,” said Robert Weaver, president of Tontitown, Ark.-based P.A.M. Transportation Services. “June posted the most significant progress and resulted in positive net income, although not at a level high enough to overcome the losses incurred in April and May.”

Weaver said the largest negative impact on the company’s expenses during the quarter continued to be the soaring cost of diesel. “We have maintained our focus on fuel-saving strategies, and continue to see benefits from initiatives taken,” he said. “We are optimistic that if the trend in industry reductions in available truck capacity continues, it will have a positive effect on demand for our services and provide opportunities to negotiate rates that more fairly compensate us for our services.”