Covenant earnings jump as carrier boosts shipments

Covenant earnings jump as carrier boosts shipments

January 30th, 2013 by Staff Reports in Local - Breaking News

A Covenant Transport truck drives along I-24 over Cummings Highway in this file photo.

Photo by Gillian Bolsover

Covenant Transport said today it earned $6.1 million last year on revenues of $674.3 million.

The Chattanooga-based trucking company reversed its losses of $14.3 million in the previous year as revenues grew 3.3 percent and the company pared some of its expenses. The earnings results, which were reported after the markets closed today, were 2 cents per share above analysts projections.

"We expect continued progress in operations and in reducing our aggregate balance sheet and off-balance sheet obligations," Covenant CEO David Parker said in a statement today. "Freight results for the first three weeks of January 2013 give us confidence of continued meaningful revenue statistics over year ago. However, based on the gain from sale of real estate in the first quarter of 2012 and a small number of significant claims incurred in early 2013, we expect earnings comparisons in the first half of 2013 to be negative compared with 2012, then becoming positive in the second half of 2013."