U.S. Xpress sees revenue increase, profit decline

U.S. Xpress sees revenue increase, profit decline Truckload carrier U.S. Xpress of Chattanooga, TN, said its revenues for the third quarter of 2001 inched up 5.2% compared to the same period in 2000, but its profits dropped by over 50%. For the first nine months of 2001, the carrier reported a loss as it coped with the softening economy. U.S. Xpress said its operating revenues for the third quarter

U.S. Xpress sees revenue increase, profit decline Truckload carrier U.S. Xpress of Chattanooga, TN, said its revenues for the third quarter of 2001 inched up 5.2% compared to the same period in 2000, but its profits dropped by over 50%. For the first nine months of 2001, the carrier reported a loss as it coped with the softening economy.

U.S. Xpress said its operating revenues for the third quarter of 2001 increased 5.2% to $207.5 million, compared with $197.1 million in the same period last year. For the first nine months of 2001, revenues increased 0.9% to $596.4 million from $591.4 million in 2000.

Profits, however, sharply declined. U.S. Xpress said it posted net income of $304,000 in the third quarter of 2001, compared with net income of $1.4 million in the same period last year. For the first nine months of 2001, the carrier reported a loss of $529,000, compared with net income of $5.3 million in 2000. However, U.S. Xpress continued to expand despite the tougher operating environment, adding 40 owner-operators to its fleet. The company operates 5,200 tractors total, 748 of which are owner-operators.

"Our third quarter results continue to reflect the impact of the difficult economic environment within our industry," said Patrick Quinn, U.S. Xpress’ co-chairman. "The decline in third quarter earnings over the prior-year period was primarily due to reduced operating margins in our floor covering logistics operation and expenses associated with the rapid expansion of our deferred airfreight operation.”

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