Celadon Group Inc. today reported that revenue for the second fiscal quarter decreased 13.7% to $119.6 million, down from $138.6 million in the 2007 quarter. The quarter ended December 31, 2008.
Freight revenue, which excludes fuel surcharges, was down 14% to $98.5 million in the 2008 quarter from $114.5 million in the 2007 quarter. Net income was unchanged at $1.7 million in both the 2008 and 2007 quarters. Earnings per diluted share was unchanged at $0.08 in both the 2008 and 2007 quarters.
For the six months ended December 31, 2008, revenue decreased 2.2% to $266.5 million in 2008 from $272.4 million for the same period last year. Freight revenue, which excludes fuel surcharges, was down 9% to $207.8 million in 2008 from $228.4 million for the same period last year. Net income increased 7.1% to $4.5 million in 2008 from $4.2 million for the same period last year. Earnings per diluted share increased by 11.1% to $0.20 in 2008 from $0.18 for the same period last year.
"Since September, we've seen a significant falloff in demand, particularly import volumes out of Mexico, as the weakening U.S. economy has dramatically reduced Mexican exports to the U.S.,” said Chairman and CEO Steve Russell. “Although the devaluation of the Mexican peso and increased costs associated with imported goods from China should make Mexico far more competitive, this change has not yet translated to an increase in Mexican production. As a consequence of the falloff in the U.S. economy, we experienced a significant decline in loaded miles run, as well as an increase in empty miles.
“We were able to offset the adverse impact of these changes through effective cost management. A major improvement in miles per gallon has been achieved through lowering tractor speeds, improved tractor aerodynamics, added auxiliary heaters, implementation of a strict tractor idling policy, renegotiation of bulk fuel purchasing arrangements, and counseling of our drivers in more efficient driving patterns. Further, we have benefited by a decline in diesel prices. We have also been effective at cost controls in virtually all areas of our business. Although we have seen a significant reduction in capacity in the truckload industry, through fleet failures and the lack of new Class 8 tractors being built, demand has declined at a greater rate.”