Covenant Transport Predicts Lower First-Quarter Earnings

Truckload carrier Covenant Transport Inc. said Wednesday its first-quarter earnings would be between breakeven and a loss of 6 cents per share.

The company earned 5 cents per share a year earlier. Chief Executive Office David Parker said in a statement that lower results were mainly the result of “softer-than-expected freight demand.”

Parker said the Chattanooga, Tenn., company believed “some customers are using the seasonal freight downturn of the first quarter to test our resolve concerning rate increases and by diverting some freight.”

Covenant Transport is ranked No. 29 on the 2004 Transport Topics 100 listing of the largest for-hire carriers in the United States and Canada.