Covenant Transport doubled its third quarter earnings from a year ago despite cost pressures from higher driver pay.
Aided by lower fuel and insurance expenses, the Chattanooga-based trucking company said Thursday it earned $2 million, or 13 cents per share, in the third quarter on total revenue of $170.8 million. A year ago, Covenant earned $1 million, or 7 cents per share, on sales of $168.4 million.
"Operating results were favorable as our asset-based operating ratio improved to 95.6 percent, compared with 96.1 percent in last year's third quarter," Covenant CEO David Park said. "Higher costs were partially offset by an overall reduction in fuel and insurance costs. Net fuel expense was approximately 14.6 cents per company mile in the 2013 quarter compared with 17.0 cents per company mile in the 2012 quarter due primarily to improved fuel economy and more stable fuel prices in the 2013 quarter."
Covenant announced Thursday that Herbert J. Schmidt, the 57-year-old former president of Con-Way Truckload, has been elected to Covenant's board of directors. Prior to the merger of Contract Freighters Inc. with Con-way Inc. in 2007, Schmidt was CEO at CFI.