Celadon Group Inc. saw profit increase 21.2 percent in its latest quarter as revenue climbed 10.5 percent, the Indianapolis-based trucking firm announced Wednesday.
Celadon reported profit of $8 million, or 35 cents per share, in its first fiscal quarter ended June 30, compared with $6.6 million, or 29 cents per share, in the same quarter a year ago.
Revenue climbed to $193.4 million, up from $175.1 million.
Celadon’s earnings met the expectations of market analysts, but revenue fell short of the average estimate of $202.7 million.
Celadon shares fell about 2.4 percent in early trading Thursday, to $20.52 each.
"We are pleased with our overall improvement in our operating statistics,” said Celadon CEO Paul Will in prepared remarks that noted improvement in average revenue per truck per week, average seated truck count and average revenue per loaded mile.
Will said higher expenses are forcing Celadon and other trucking firms to increase rates.
“"We continue to work on driver recruitment and retention as the market remains challenging for qualified drivers,” Will said. “As a result, our costs related to driver training, advertising for experienced drivers, and other recruitment and retention efforts have continued to increase.
“This, along with economic and safety regulatory issues, has resulted in more constrained truckload capacity for shippers. Their understanding and willingness to adjust rates upward reflects the collective capacity and service challenges currently facing the industry.”