News

Covenant returns to profitability

Jan. 29, 2003

Chattanooga, TN-based truckload carrier Covenant Transport said it returned to profitability in 2002. Covenant posted a fourth-quarter net income of $3.4 million on revenues of $146.7 million, after losing $8.3 million on revenues of $140.6 million in the same period of 2001. For the year, Covenant said net income topped $8.3 million on revenues of $564.4 million, compared to losses of $6.7 million

Sean Kilcarr

Chattanooga, TN-based truckload carrier Covenant Transport said it returned to profitability in 2002.

Covenant posted a fourth-quarter net income of $3.4 million on revenues of $146.7 million, after losing $8.3 million on revenues of $140.6 million in the same period of 2001. For the year, Covenant said net income topped $8.3 million on revenues of $564.4 million, compared to losses of $6.7 million on revenues of $573.6 million in 2001.

Covenant lost money in 2001 because of a $9.5 million after-tax charge it took to cover the declining value of its tractors. The carrier also had to take a charge of $2 million charge in the first quarter of 2002 for the same reason, along with an $890,000 charge to cover the early retirement of debt.

About the Author

Sean Kilcarr | Editor in Chief

Sean previously reported and commented on trends affecting the many different strata of the trucking industry. Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.