published Wednesday, July 27th, 2011

Diesel bills make Covenant wheeze

With fuel prices up and the economy still recovering, Covenant Transport reported a drop in earnings and freight revenue this spring compared with a year ago.

The Chattanooga-based trucking giant reported Tuesday that it earned a profit of $1.7 million, or 11 cents per share, on freight revenue of $133.6 million in the three months ended June 30. In the same period a year ago, Covenant earned $2.9 million, or 20 cents per share, on freight revenue of $126.3 million.

Diesel prices paid by Covenant truckers were up 32 percent from a year ago while higher labor costs added another 2 cents per mile. Most of the increases in gas prices were passed along in higher fuel surcharges for shippers.

“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,” Covenant CEO David Parker said in a statement after the stock market closed Tuesday.

But the higher rate per mile was offset by a drop in miles driven and the rise in fuel costs, driver pay and insurance claims this year, Parker said.

“We expect to continue managing our idle time and truck speeds, as well as invest in more fuel-efficient tractors to improve our fuel miles per gallon,” Parker said.

about Staff Report...

Get breaking news from the Times Free Press on Twitter at www.twitter.com/timesfreepress or by visiting us on Facebook or Twitter at the right:

Comments do not represent the opinions of the Chattanooga Times Free Press, nor does it review every comment. Profanities, slurs and libelous remarks are prohibited. For more information you can view our Terms & Conditions and/or Ethics policy.
please login to post a comment

Other National Articles

videos »         

photos »         

e-edition »

advertisement
advertisement

Find a Business

400 East 11th St., Chattanooga, TN 37403
General Information (423) 756-6900
Copyright, Permissions, Terms & Conditions, Privacy Policy, Ethics policy - Copyright ©2014, Chattanooga Publishing Company, Inc. All rights reserved.
This document may not be reprinted without the express written permission of Chattanooga Publishing Company, Inc.