Overnite raises rates
Hanley said the rate increase is necessary to cover a variety of rising business costs.
"We are no different than any other company in the trucking sector, fighting an uphill battle for an adequate return on investments amidst skyrocketing costs for health care, pension and insurance liability," he said.
Hanley added that Overnite must invest in people, equipment and technology if it wants to continue to be financially sound.
"Without sufficient profits, you cannot make those investments needed to ensure your future," he said.
However, Richmond, VA-based Overnite has been extremely profitable over the last 15 months, despite a two-year long strike by the International Brotherhood of Teamsters, the terrorist attacks of September 11 and last year's recession.
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. In the first quarter of 2002, Overnite's net income was $9 million on revenue of $304.9 million, compared to $8 million on revenue of $313.2 million in the same period last year.
