U.S. Xpress Enterprises, Inc. has reversed its first quarter 2005 loss of $2.1 million to a $734,000 profit for 1Q 2006. U.S. Xpress swung a profit after a 11.4% increase in revenue-- to $299.7 million-- compared with $269.1 million in the first quarter of 2005.
The company is the fifth-largest publicly owned truckload carrier in the U.S. as measured by revenue.
“During the first quarter, we achieved improved operating results in each of our business segments,” noted co-chairman of U.S. Xpress, Patrick Quinn, in the published company earnings report. “Although we faced a slightly weaker truckload freight environment than expected, especially along the west coast, we achieved improvements in operating income in our truckload segment through increased pricing and from the contributions of Arnold and Total.” (On Feb. 28, 2006, the company acquired additional equity in both Arnold Transportation and Total Transportation.)
“We continue to be optimistic about the balance of the year,” he continued. “Freight demand improved in March and to-date in April after a relatively weak first two months of 2006.
“Although the recent run-up in fuel prices is a concern,” Quinn added, “our fuel surcharge program is more efficient than a year ago and has helped to mitigate much of the impact. The availability of quality drivers is still a significant issue in terms of seating tractors, but in turn we expect it to continue to constrain capacity growth within the trucking industry.”