Covenant Transportation Group, Inc., nearly doubled its second quarter net income from a year ago as the Chattanooga-based trucking firm cut expenses while still raising total revenue by 0.7 percent.
Covenant said today it earned net income of $3.8 million, or 25 cents per share, on revenues of $173.7 million in the three months ended June 30. A year earlier, the trucking firm earned only $1.9 million, or 13 cents per share.
Covenant increased its operating ratio to 95.3 percent as shipments remained strong while Covenant trimmed its truck fleet by 7.8 percent.
"The quarter was characterized by robust freight volumes, customers seeking a high level
of service, an ability to improve yields through lane engineering and
higher rates, and strong competition for an increasingly short supply
of qualified professional drivers," Covenant CEO David Parker said.
As the economy improves, Covenant is having to boost payments to its drivers. Parker said salaries, wages and employee pay adjustments in the past year have cost about 5.3 cents per mile driven.