Richmond, VA-based Overnite said 2001 was its "finest year" since 1994, as it earned net income of $45.5 million on revenues of $1.13 billion last year, compared to $43.2 million and $1.11 billion, respectively, in 2000.
The subsidiary of rail giant Union Pacific added that it was affected by the recession and the terrorist attacks on the United States on September 11 in the fourth quarter of last year. Fourth quarter revenues in 2001 were down 1.1% to $271 million compared to the same quarter in 2000 and net income for the quarter fell from $13.3 million to $10.5 million.
Despite lower fourth quarter revenues and income, Leo Suggs, Overnite's chairman & CEO, considers 2001 a very successful year for the carrier. He said Overnite significantly improved its billing, rating and collection processes, improving customer satisfaction and reducing its accounts receivable by more than $30 million.
Overnite's strong cash flow and the support from its parent, Union Pacific, enabled the purchase of Motor Cargo Industries, a regional LTL carrier in the West. The transaction should be completed in mid-February with the purchase of the less than 1% minority shares still outstanding.
