Celadon posts lower 4Q net income

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Celadon Group Inc. on Tuesday, Aug. 11, reported its financial and operating results for the three months and fiscal year ended June 30, the fourth fiscal quarter of the company’s 2009 fiscal year.

For the quarter, revenue decreased 24.4 percent to $116.9 million in the 2009 quarter from $154.6 million in the 2008 quarter. Freight revenue, which excludes fuel surcharges, was down 10.7 percent to $104.2 million from $116.7 million. Net income decreased to $0.2 million from $2.2 million.

For the fiscal year, revenue decreased 13.4 percent to $490.3 million in 2009 from $565.9 million for the same period last year. Freight revenue was down 10.8 percent to $408.2 million from $457.5 million. Net income decreased 60 percent to $2.6 million from $6.5 million.

“Although the freight environment continued to reflect the weakness of the U.S. economy, we did achieve more than a seasonal pickup in shipments progressively through the June quarter,” said Steve Russell, chairman and chief executive officer of Indianapolis-based Celadon. “The growth in business with customers added in the past year helped drive the improvement. The rate environment has continued to be quite difficult, with many fleets struggling and willing to accept noncompensatory pricing.”

Russell said Celadon’s average rate per loaded mile continued to decline, and for the June quarter was down 6.5 percent from the June 2008 quarter. “The financial impact of this decline was partly offset by cost reductions achieved throughout the company, as well as the benefit of lower fuel costs,” he said.

Russell said Celadon’s balance sheet remains solid. “We retain significant liquidity to support the growth of our business,” he said. “We don’t have any equipment on order after 2009 and don’t expect to order any equipment in calendar year 2010. We are in compliance with our credit agreement covenants.”