Chattanooga, TN-based truckload carrier Covenant Transport said it returned to profitability in 2002.
Covenant posted a fourth-quarter net income of $3.4 million on revenues of $146.7 million, after losing $8.3 million on revenues of $140.6 million in the same period of 2001. For the year, Covenant said net income topped $8.3 million on revenues of $564.4 million, compared to losses of $6.7 million on revenues of $573.6 million in 2001.
Covenant lost money in 2001 because of a $9.5 million after-tax charge it took to cover the declining value of its tractors. The carrier also had to take a charge of $2 million charge in the first quarter of 2002 for the same reason, along with an $890,000 charge to cover the early retirement of debt.