US Xpress sees net income halved in second quarter

US trucking company, US Xpress Enterprises, has reported that net income for the second quarter ended June was US$2.7 million compared with net income of $5.7 million in the prior-year period.

Revenue for the second quarter rose by 2.8 per cent to $400.3 million, up from $389.5 million a year ago. Truckload revenue, excluding the effect of fuel surcharges, increased 3.8 per cent to $319.6 million. Truckload operating income for the quarter decreased 38.4 per cent to $8.5 million from $13.8 million in the corresponding prior year period.

But revenue of Xpress Global Systems increased to $25.8 million from $25.6 million, and its operating income for the second quarter increased 17.6 per cent to $2 million.

"Although our truckload operating results improved significantly from the first quarter of 2007, continuing softness in truckload freight demand in the second quarter resulted in a difficult pricing environment and lower utilisation compared to the prior year second quarter adversely impacting truckload operating income," said US Xpress co-chairman Pat Quinn.

"On a positive note, Xpress Global achieved its sixth consecutive quarter of improved year-on-year quarterly operating income," he said.