Covenant’s Net Income Slides in 3Q

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ovenant Transport said late Tuesday its net income for the third quarter was $795,000 or 6 cents a share, compared with a net income of $1.2 million or 9 cents a year earlier.

img src="/sites/default/files/images/articles/covenanttransportlogo.gif" width=70 align=right>The truckload carrier said its revenue increased 4% to $176.7 million from $169.9 million in 2005.

In September, Covenant acquired Nashville, Tenn. truckload carrier Star Transportation for $40 million in cash. Covenant also took on about $42 million in Star debt. (Click here for previous coverage.)

In connection with the Star acquisition, David Parker, chief executive officer of Covenant, said the carrier closed two terminals and reduced its workforce by about 150 as part of an effort “to reduce the size of Covenant's least profitable operations.”

Covenant is ranked No. 37 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.