Celadon posts lower 2Q net income

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Celadon Group Inc. on Monday, Jan. 25, reported its financial and operating results for the three and six months ended Dec. 31, 2009, the second fiscal quarter of the company’s fiscal year ending June 30, 2010.

Revenue for the quarter increased 6.4 percent to $127.2 million from $119.6 million. Freight revenue, which excludes fuel surcharges, increased 10.8 percent to $109.1 million from $98.5 million. Net income decreased 41.2 percent to $1.0 from $1.7 million.

For the six months ended Dec. 31, 2009 revenue decreased 4.3 percent to $255.1 million from $266.5. Freight revenue, which excludes fuel surcharges, increased 5.8 percent to $219.8 million from $207.8 million. Net income decreased 64.4 percent to $1.6 million from $4.5 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 December quarter,” says Steve Russell, chairman and chief executive officer of the Indianapolis-based company. “The growth in business with customers added in the past year helped drive the improvement, with loaded miles increasing approximately 16.9 percent compared with the December 2008 quarter.”

Russell said the rate environment has continued to be difficult, with many fleets struggling and willing to accept noncompensatory pricing. “Our average rate per loaded mile declined from prior year, and for the December quarter was down 6.7 percent from the December 2008 quarter,” he said. “However, the rate per loaded mile appears to have stabilized, which is an encouraging sign. 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.”

Russell said Celadon’s balance sheet remains solid and that the company retains significant liquidity to support business growth.