Celadon Group Inc. on Tuesday, April 26, reported its financial and operating results for the three and nine months ended March 31, the third fiscal quarter of the company’s fiscal year ending June 30. Revenue for the 2011 quarter increased 4.8 percent to $135.6 million from $129.4 million in the 2010 quarter. Freight revenue, which excludes fuel surcharges, decreased 0.7 percent to $109.1 million from $109.9 million. Net income increased to $2.0 million from $0.4 million.
For the nine months ended March 31, revenue increased 6.4 percent to $409.0 million in 2011 from $384.5 million for the same period last year. Freight revenue, which excludes fuel surcharges, increased 3.2 percent to $340.1 million from $329.7 million. Net income increased to $9.3 million from $2.0 million.
“Despite extremely challenging winter weather in the quarter and rising fuel prices, we are pleased with our results and the achievements of our staff in the March 2011 quarter,” said Steve Russell, chairman and chief executive officer of Indianapolis-based Celadon. “Our average rate per loaded mile increased by 6.5 percent compared to the March 2010 quarter, which more than offset lower volumes largely related to weather-related issues and a significant increase in fuel expense.”
Russell said the lag in fuel surcharge had a negative impact due to the rapidly increasing costs during the quarter. “Overall, the truckload industry is experiencing a significant capacity shortage, which became more evident as the weather improved during the quarter, and has continued into the current quarter,” he said. “Fleets that have experienced poor financial performance during the recent past are unable to refresh their fleets, resulting in a major increase in fleet aging. With our young fleet, we are able to attract drivers and provide excellent service to our customers.”