Covenant reports lower 2Q profit

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Covenant Truck

Covenant Transportation Group Inc. on Tuesday, July 26, said freight revenue for the second quarter ended June 30 was $133.6 million, a decrease of 5.5 percent compared with the second quarter of 2010. Operating income was $7.2 million with an operating ratio of 94.6 percent compared with operating income of $10.0 million and an operating ratio of 92.9 percent.

Total revenue including fuel surcharges increased 2.3 percent to $172.9 million from $169.0 million. Net income was $1.7 million compared with net income of $2.9 million.

“Average freight revenue per total mile increased an encouraging 6 percent, which we attribute to improvements in our freight mix and customer recognition of the combination of service and capacity that the Covenant Transportation Group companies offer,” said David Parker, chairman, president and chief executive officer of the Chattanooga, Tenn.-based company. “The increase in rates almost offset the impact of weaker utilization and increasing costs of fuel, driver pay and insurance claims during the 2011 quarter.”