Celadon Group Reports 1st Quarter Revenues up 29%, Net Income Down 20.5%
Celadon Group Inc. (NYSE: CGI), a provider of long-haul, full-truckload freight service across the United States, Canada and Mexico has reported that for the three months ended March 31, 2014, revenue increased 29.1% to $193.2 million and net income decreased 20.5% to $3.5 million.
Freight revenue, which excludes fuel surcharges, increased 31.0% to $155.6 million in the March 2014 quarter from $118.7 million in the March 2013 quarter.
For the nine months ended March 31, 2014, revenue increased 24.5% to $561.9 million in 2014 from $451.0 million for the same period last year.
Freight revenue, which excludes fuel surcharges, increased 27.2% to $454.8 million in 2014 from $357.6 million for the same period last year. Net income decreased 24.5% to $15.2 million in 2014 from $20.0 million for the same period last year.
Paul Will, President and Chief Executive Officer, commented: “Severe weather conditions negatively impacted our results for the March 2014 quarter. The winter storms encountered were widespread and significantly affected both fleet utilization and operating costs.
“Operations, maintenance and fuel expenses increased primarily due to the weather and to older equipment associated with our most recent acquisitions, which will be somewhat alleviated in future periods when those assets are refreshed in a similar fashion to the remaining Celadon fleet.”
He added: “The average age of the Company’s tractor fleet, which includes over 400 tractors from recent acquisitions, has increased to 2.2 years as of March 2014. We have on order 800 trucks to replace the acquisition equipment and begin to refresh the remaining fleet, which we expect will improve fuel economy and help bring down our overall maintenance costs to more historical levels.”
More at: www.celadontrucking.com
Category: General Update
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