INDIANAPOLIS — Celadon Group Inc., which provides transportation services including trucking and logistics, said that its fiscal second-quarter profit fell 40 percent as low rates persisted despite an increase in volume.
In the period ended Dec. 31, the company earned $1 million, or 5 cents per share, down from $1.7 million, or 8 cents per share, during the same period a year before. Revenue rose 6.4 percent to $127.2 million from $119.6 million.
Analysts surveyed by Thomson Reuters expected profit of 3 cents per share on revenue of $125 million.
Shipments improved as the quarter went on, and loaded miles rose 16.9 percent from a year earlier, the company said.
But Chairman and CEO Steve Russell said the rate environment was difficult, and the average rate per loaded mile fell 6.7 percent from a year earlier, with "many fleets struggling and willing to accept non-compensatory pricing."
The rate appears to have stabilized, he said. And the financial impact of low rates were partially offset by cost reductions and lower fuel costs.
Kevin Jones of The Trucker staff can be reached for comment at firstname.lastname@example.org.
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