Covenant Reports 2Q Loss; Cites 'Soft Demand'

Click here to write a Letter to the Editor.

ovenant Transport said late Wednesday its net income was $652,000 or 5 cents a share in the second quarter, down from $4.4 million or 30 cents a year earlier.

Covenant had said in late June its second-quarter earnings would be 2 cents to 8 cents a share, citing "softer than expected freight demand." (Click here for previous coverage.)

The truckload carrier said in a statement that its revenue rose 5% to $156.8 million for the quarter.

Covenant said in a statement that softer freight demand “impacted both average miles per tractor and our ability to obtain the level of rate increases we originally expected.”

“Other than a brief period of increased demand in late April and early May, our demand did not improve to the seasonal level we expected or needed,” said Chief Executive Officer David Parker.

Covenant is ranked No. 36 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.