Covenant expects to report 3Q net loss

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Covenant Transportation Group Inc. on Friday, Oct. 7, announced it expects to report a net loss in the range of $0.5 million to $1.7 million for the 2011 third quarter compared to net income of $1.9 million during the same timeframe in 2010.

“The main differences compared with the third quarter of 2010 include an approximately 9 to 10 percent decrease in revenue miles per truck, combined with increased costs per mile in the areas of salaries, wages and related expenses, net fuel expense, operations and maintenance, and insurance and claims,” says David Parker, chairman, president and chief executive officer of the Chattanooga, Tenn.-based company. “These factors are expected to more than offset an approximately 5 to 6 percent increase in freight revenue per total mile, excluding fuel surcharge revenue.”