Celadon Group’s revenues were up nearly 19 percent for the quarter ended June 30 and rose nearly 7 percent for the fiscal year that also ended in June. Net income was $2.7 million for the quarter – up from $200,000 in the 2009 quarter – and $4.7 million for the fiscal year. Net income for the previous fiscal year was $2.6 million.
“The improving freight environment is reflected in our earnings improvement,” said Celadon Chairman and CEO Steve Russell. “Other than an unusual increase in insurance and claims costs, which resulted in about a five cents per share reduction in earnings compared with June 2009 quarter, all key operating and expense categories remain positive and continue to improve.”
Celadon reported that utilization in terms of miles per truck rose 8 percent in the most recent quarter over the same 2009 quarter. Meanwhile, rates improved by about three cents per mile, or 2 percent.
“The freight environment has improved consistently over the past four months, as operating capacity has declined in the industry, and the average age of over-the-road trucks has continued to increase,” Russell said. “Our average tractor is about 1.5 years old, meaningfully younger than the typical over the road tractor. Further, we have broadened our customer base and have also benefitted from the increase in trade with Mexico, as Mexico has become more competitive with Asian manufacturers.”