Swift Transportation Co. reported its first-quarter net income fell 59% to $12.3 million, or 9 cents per share, as winter weather drove down profits.
Revenue rose 2.7% to $1.01 billion, primarily because of increases in the dedicated unit, where 550 more tractors were deployed during the quarter.
Operating income, which excludes interest and taxes, fell by one-third to $46.2 million, which was reduced by about $15 million due to weather-related factors such as reduced freight volume and effects on insurance and maintenance expenses.
Phoenix-based Swift’s earnings report said adjusted net income was 12 cents per share, down from 24 cents per share, reflecting amortization and debt-related costs.
Truckload unit revenue declined 1% to $553.1 million, dedicated revenue increased 8.5% to $193.7 million, refrigerated revenue rose 0.4% and intermodal revenue rose nearly 10% to $91.3 million. Operating income declined in all of the units, compared with the 2013 quarter.
In a letter to shareholders posted on its website, Swift said it was “optimistic about several operational trends we have experienced over the past several weeks. Demand continues to increase and capacity remains tight, which has led to improvement in our utilization and rate per mile.”
Swift is ranked No. 7 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.