Trucker: æTough operating environmentÆ
Trucking company Heartland Express said Monday it had second quarter net profit of $16.7 million, down 5.5 percent from $17.6 million in the same 2009 period.
Operating revenue was $127.4 million in the quarter ending June 30, compared to $117 million in the year-earlier period.
Heartland said earnings fell due to a decrease in gains on disposal of property and equipment and increased depreciation expense primarily attributable to the purchase of new tractors during 2009.
The company said it “continues to post low operating ratios in a very tough operating environment. The increase in operating revenues resulted from the tightening of available industry capacity. Freight demand continues to lag dramatically behind that experienced in 2007 prior to the recent recession, however, freight rates have stabilized and equipment utilization has improved in comparison to last year.”
Heartland said it is “positioned to add capacity and continue to increase utilization to take advantage of opportunities resulting from decreased industry capacity. The industry continues to be challenged by driver recruitment and retention. This challenge is expected to amplify with the implementation of the stringent safety requirements of CSA 2010 and the anticipated decrease in qualified drivers.”
Trucker: “Tough operating environment”
