OTTAWA, Ont. - Canada's largest truck fleets spent more on owner/operators and fuel in the last half of 1999 than they did in the last half of 1998, but still managed to maintain their operating profi...
IN THE BLACK: Despite fuel price increases in late 1999, Canada's largest carriers maintained a profit on the road.
OTTAWA, Ont. – Canada’s largest truck fleets spent more on owner/operators and fuel in the last half of 1999 than they did in the last half of 1998, but still managed to maintain their operating profits.
The group itself was larger than ever, with 2,500 for-hire companies making more than $1 million a year in revenue, compared with 2,350 who fell into the category during the same period in 1998, according to the Statistics Canada numbers.
The fleets’ average operating expenses increased to $3.35 million, up 11 per cent over the second half of 1998, with for-hire trucking companies spending 19 per cent more on owner/operator expenses and 12 per cent more on fuel than they did during the same period in 1998.
Operating revenues for the group climbed to $9 billion ($4.4 billion in the third quarter and $4.6 billion in the fourth quarter), while operating expenses reached $8.3 billion ($4.1 billion in the third quarter and $4.3 billion in the fourth quarter).
The group’s operating ratio – calculated by dividing operating expenses by operating revenues – was 0.93, unchanged from the same period in 1998. Any ratio under 1.00 represents a profit. n
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