INDIANAPOLIS, Ind. — Celadon Group’s revenue was up 13% to $138.6 million in the three-month period ending Dec. 31 compared with the same quarter in 2006. Freight revenue, which excludes fuel surcharges, was up 7% to $114.5 million in the 2007 quarter from $107.5 million in the 2006 quarter. Net income decreased 72% to $1.7 million in the 2007 quarter from $6.1 million for the same quarter last year. Earnings per diluted share decreased by 69% to $.08 in the 2007 quarter from $.26 for the same quarter last year.
“Despite a very difficult freight environment that is affecting our entire industry, we remain committed to our long-term strategy, which is based on growth through success in attracting and retaining safe, experienced drivers, both internally and through acquiring the assets of underperforming companies,” said Celadon chairman and CEO Steve Russell.
Russell noted that the national average diesel fuel price, as measured by the US Department of Energy, rose 64 cents per gallon in the December quarter compared with the same quarter of 2006. “Net of surcharges collected in each period, the increase in fuel prices negatively impacted our results by approximately five cents per share,” he said.
Russell also pointed to claims costs, a change in effective tax rate and the surging Canadian dollar as negatively impacting the quarter’s results.
“Looking forward, we are confident in Celadon’s strength, liquidity, and position in the industry,” Russell said. “We believe our strategic growth plan is sound and that we have the team to execute it.”
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