Dallas-based refrigerated carrier Frozen Food Express Industries said its net income jumped 37% to $3.49 million on 9.3% higher revenues of $113.3 million in the second quarter of 2004 compared to the same period last year. For the first half of 2004, net income more than doubled to $5.43 million as revenue increased by 11.1% or $21.8 million.
However, FFE chairman & CEO Stoney M. (Mit) Stubbs, Jr., said he "expects things to get better" as the year goes on.
"Our business should continue to improve because, after the last few years of dealing with a softening demand for trucking transportation services caused by a sloppy economy, this new too-much-freight-for-too-few-trucks supply vs. demand environment should improve our ability to raise freight rates," he explained.
"Much of the reason for our operating improvement this year has been caused by the supply/demand imbalance enabling us to use our fleet more efficiently," Stubbs noted. "I believe that, for the second half of this year, net income gains in our industry will come from carriers who are finally able to raise their freight rates after wringing out every ounce of efficiency they can from their trucking operations."