Truckload carrier Swift Transportation posted net earnings of $9.4 million this quarter, compared to $259,000 in the first quarter of 2001, despite having to restate its finances in light of the acquisition of rival M.S. Carriers in 2000.
Phoenix-based Swift said it adjusted its first quarter numbers down by $1.3 million to account for a non-cash pre-tax reduction in market value of interest rate derivative agreements held Memphis, TN-based M.S. Carriers. The Swift adjusted upward its results for the first quarter of 2001 by $3 million, accounting for a pre-tax charge for the increase in market value of the interest rate derivative agreements.
As a result, Swift said its revenues for the first quarter decreased 6.6% to $475.8 million, compared with $509.6 million for the same quarter in 2001. The first quarter of 2002 also includes $2.7 million of fuel surcharge revenue versus $18.5 million in 2001. Excluding this fuel surcharge revenue, the decrease in revenues would have been 3.7%, Swift said.
"Due to turnover at M.S. Carriers, we started the quarter with approximately 650 trucks without drivers and operated during the first quarter of 2002 with over 300 less owner operators than the first quarter of 2001," said chairman & CEO Jerry Moyes. "On a positive note, we have reduced the number of unmanned trucks to approximately 300 and we currently see freight levels improving over those seen in 2001."