Truckload carrier Swift Transportation saw its revenues in the third quarter of 2001 climb 7%, but its earnings fell by 90%. Swift said that it used the “pooling of interests” method to calculate its financial results, reflecting its acquisition of Memphis-based truckload company M.S. Carriers in June.
Swift also noted its 2001 revenues reflect the transfer of its logistics business to Transplace.com, an Internet-based logistics company owned in conjunction with four other truckload carriers.
Phoenix-based Swift said its revenues for the third quarter of 2001 increased 7% to $536.4 million, compared with $501.3 million in the same quarter last year. However, net earnings plummeted to $2.8 million in the third quarter of 2001, down from $19.4 million in the same quarter last year.
Swift added that its third quarter 2001 results include a $10.5 million non-cash pre-tax adjustment for M.S. Carriers’ stake in Transportes EASO, an intra-Mexico truckload carrier, and a $3.6-million non-cash adjustment for the change in market value of interest rate derivative agreements of M.S. Carriers.
For the first nine months of 2001, Swift’s revenues increased 8.3% to $1.58 billion from $1.46 billion in 2000. Net earnings for the first nine months of 2001 dropped to $14.2 million, compared to $57.4 million in 2000. Those results also include a $7 million pre-tax adjustment for M.S. Carriers insurance and claims reserves and $2 million in merger expenses.
“Despite the issues related to EASO, we continue to be optimistic about the integration of M.S. Carriers. We are on track to complete the integration by January 1, 2002,” said Jerry Moyes, Swift’s chairman and CEO. “At that point we will be able to take full advantage of the efficiencies of what will be the largest truckload fleet in the United States. We are excited about the opportunities that will be available when freight demand returns to normalized levels as the economy begins to improve.”