Revenues, Income Drop at Smithway Motor Xpress

April 27, 2001
Truckload carrier Smithway Motor Xpress Corp. watched its first-quarter 2001 operating revenue decrease 6.6% to $47.4 million compared to the first quarter of 2000, along with a net loss of $1.3 million compared to earnings of $238,000 in the same quarter last year. “The slowing economy and the worst winter in many years were the main factors that affected Smithway’s profitability during the first
Truckload carrier Smithway Motor Xpress Corp. watched its first-quarter 2001 operating revenue decrease 6.6% to $47.4 million compared to the first quarter of 2000, along with a net loss of $1.3 million compared to earnings of $238,000 in the same quarter last year.

“The slowing economy and the worst winter in many years were the main factors that affected Smithway’s profitability during the first quarter, along with many other companies in our industry,” said William G. Smith, the company’s chairman, president & CEO. “Soft freight demand caused a combination of fewer loads, rate pressure, higher non-revenue miles and more layovers.”

Smithway said its average revenue per tractor per week dropped $130, reaching $2,193 in the first quarter of 2001, down from $2,323 during the same period last year. The harsh winter added to the problem, increasing fuel, towing and repair expenses, making deliveries difficult, and further slowing the activity of customers in Smithway’s core building-materials group.

In addition, increased engine idling because of the cold weather and higher non-revenue miles reduced the overall effect of its fuel surcharges, the carrier said.

However, the company believes there may be a silver lining to these problems.

“As much as the current trucking environment has impacted us, it has hit many of our competitors even harder,” said Smith. “Some have gone out of business and more will follow.”

About the Author

Sean Kilcarr | Editor in Chief

Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations 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.

Sponsored Recommendations

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

How to Choose the Right Route Planning Solution

This free buyer's guide will help equip you with the knowledge and insights needed to analyze route planning software and vendors in the market and, ultimately, make an informed...

How to Put Your Trucking Data to Work

How fleets can overcome data overload to optimize operations and get ahead.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!