Covenant’s 2Q marks ‘best financial performance in several years’

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Covenant Truck

Covenant Transportation Group on Wednesday, July 25, announced freight revenue for the second quarter ended June 30 of $134.2 million, an increase of 0.4 percent compared with the second quarter of 2011. Operating income was $11.1 million compared with $7.2 million, and net income was $4.3 million compared with $1.7 million. The company’s operating ratio was 91.8 percent compared with 94.6 percent.

“The financial results of the second quarter of 2012 marked our best financial performance in several years,” said David Parker, chairman, president and chief executive officer of the Chattanooga, Tenn.-based company. “While the pace of economic growth remains uncertain and the driver market is extremely tight, we believe the trucking economy’s freight demand and capacity remain closely in balance. Regulatory issues, increasing costs and the tight driver market have limited trucking capacity to an extent that yield improvements have been available in most markets to carriers with excellent customer service.”