Business is Good, Very Good for Trucking Companies

Taken together, Yellow Transportation and Roadway Express reported operating revenues of $2.49 billion compared to last year’s third quarter revenues of $1.77 billion. One proviso – this year’s figures included results from USF, acquired in May (others in the Yellow Roadway stable are New Penn Motor Express, USF Bestway, Holland and Reddaway). Meridian IQ, the global logistics management subsidiary of Yellow Roadway, provided $142 million to the total, which was up 149% when USF Logistics figures are included and up 37% with USF Logistics excluded.

Taken separately, Yellow Transportation posted record quarterly revenues of $892 million, which is up 7.7% year over year. Its less than truckload (LTL) revenue per hundredweight (cwt), including fuel surcharge was up 7.2%. For the third quarter, Roadway express grew revenue by 5.7%, to $858 million. Its LTL revenue per cwt, including fuel surcharge was up 6.9%.

Enjoying growth in both its trucking operations and supply chain management operations, CNF saw its revenues grow to $1.10 billion, a gain of 13%. Of the total, Con-Way Transportation Services produced revenues of $741.4 million, which represents growth of 34%for the same quarter last year. Con-way’s operating ratio for the quarter was 87.3%, which was down from last year’s 89% ratio.

CNF’s Menlo Worldwide – which includes Menlo Logistics and the former Con-Way Logistics (integrated in the second quarter) and Vector SCM – had operating income of $12.1 million, a gain of 44%. Menlo Logistics revenues were $354.8 million, up 16% and Vector SCM operating income was up 56% at $4.2 million.

In the third quarter of 2005, regional U.S. freight forwarder, Old Dominion Freight Lines reached new record income, with revenue growing 27.9% to $275 million. The company’s 5.8% net profit margin was the highest achieved in the last 14 years.

Total revenues for the year to date are $776 million, an increase of 29.4%. For the three quarters, net income is up 38.1%, to $39.2 million year over year.

SCS Transportation, with its Saia and Jevic subsidiaries, had revenues of $284.5 million for the third quarter, up 11% for the same period as last year. Consolidated operating income for the quarter was $13.9 million, a gain of 3%. These gains were despite effects from Hurricanes Katrina and Rita, which caused property damage and disrupted operations. The full impact of the hurricanes has not yet been assessed and the figures shown here don’t include any possible insurance recovery, which will be detailed in future financial reports.

Despite the challenges, Saia still produced $198.8 million in revenues, up 15% for the quarter. Its LTL tonnage grew 7% year over year and its operating income was up 27% to $13.4 million – an operating ratio of 93.3%.

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