Less-than-truckload carrier Motor Cargo Industries said its revenues and earnings jumped in this year’s third quarter, climbing 5.7% and 16.8%, respectively, compared to the same period last year.
Motor Cargo, based in Salt Lake City, UT, said its operating revenues for the third quarter of 2001 rose to just over $36 million, compared to nearly $34 million in the same quarter of 2000. Net earnings, however, jumped to over $2 million, compared to $1.7 million in the same period last year. Motor Cargo also took a $78,000 charge in the third quarter this year related to variable stock-option accounting requirements.
Motor Cargo's logistics subsidiary, MC Distribution Services, saw its revenues grow to $1.52 million during the third quarter of 2001, compared to $1.16 million in the same period last year -- a growth rate of 30.7%, said Hal Tate, chairman & CEO of Motor Cargo.
Those results are good news for Motor Cargo, helping it remain on track to be bought out by rail giant Union Pacific, which also owns LTL carrier Overnite Transportation Co. of Richmond, VA. Motor Cargo said the deal, which offers a stock swap or cash tender offer to its shareholders, should be completed by the end of this year.