USA Truck reported a 115.7% increase in net income for the third quarter, largely as a result of increased freight demand.
The Van Buren, AR-based truckload carrier said its operating revenues rose 12.4% to more than $70.6 million in the third quarter, up from $62.8 million in the same quarter of 2001. Net income increased 115.7% to more than $1.27million in the quarter, compared to just $589,287 in the same period last year.
"We experienced strong freight demand in the third quarter despite mixed economic indicators," said chairman & CEO Robert Powell. "The combination of that stronger demand and a noticeable decline in industry capacity allowed us to increase our rates slightly and reduce our empty mile factor below 9% for the first time since the fourth quarter of 1999."
However, Powell noted that a jump in fuel prices this September was detrimental to the carrier's earnings as was the continued tight insurance market, which forced premiums up considerably late last year.