Citing a “challenging environment” in the trucking industry, Indianapolis-based Celadon Group Inc. on Thursday reported a steep decline in quarterly earnings.
The trucking company had a profit of $1.6 million, or 6 cents per share, in the fiscal fourth quarter ended June 30, down almost 87 percent from the $12 million, or 47 cents per share, that it made in the same quarter a year ago.
The earnings widely missed the average estimate of 20 cents per share by four analysts surveyed by Zacks Investment Research.
The drop in profit came despite revenue of $264.3 million in the quarter, up 4.3 percent from a year ago.
Celadon said most of the profit decline could be attributed to $7.8 million the company made in the year-ago quarter on the disposition of equipment. It also recorded $3.5 million in claims-reserve adjustments.
“Finally, the combination of industry overcapacity, and sluggish freight volumes negatively impacted our average revenue per loaded mile, which compressed our variable and fixed cost margins,” Celadon said in a written statement.
For the fiscal year, Celadon reported profit of $24.8 million, or 88 cents per share, down 33 percent from a year ago
Full-year revenue was $1.07 billion, up 18.3 percent over the previous year.
Celadon shares closed at $7.86 each Thursday before earnings were announced, down 5 cents on the day and 57 percent over the past 12 months.