Celadon Group Inc. reported its fiscal third-quarter net income declined 20% as severe winter weather raised operating costs faster than revenue increased.
The company earned $3.48 million, or 15 cents per share, down from $4.4 million, or 19 cents, a year earlier.
Revenue for the quarter ended March 31 rose 30% to $193.2 million.
CEO Paul Will said in a statement that “winter storms encountered were widespread and significantly affected both fleet utilization and operating costs. Operations, maintenance and fuel expenses increased primarily due to the weather.”
Costs also rose because the Indianapolis-based company acquired older equipment.
“We believe we have taken the right steps to position the company for growth” by adding equipment and drivers in advance of tightening industry capacity, Will said.