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Truckers Haul Heavy 3Q Payloads  Reprint permission
Quarterly reports are coming in high for trucking companies. The peak season is beginning at the same time rail service is struggling and air service's speed is viewed as less urgent for the price. Fuel surcharges are balancing increased costs. Profits seem limited only by capacity. Not surprisingly, drivers' pay is edging up. Yellow Roadway Corporation's two major units posted record operating income figures. Combined operating revenue for Yellow Transportation and Roadway Express was $1.77 billion compared with $771 million a year ago. Adjusted operating income was $119.7 million, more than three times the $39.1 million in last year's third quarter. This was the second consecutive quarter in which Yellow hit a record. It is also the highest quarter ever for Roadway. "All of our operating companies delivered another impressive quarter, and we are well positioned to complete a very successful first year as Yellow Roadway," said Bill Zollars, chairman, president and CEO of Yellow Roadway. "We are pleased with the progress of our synergy efforts and remain on track to achieve run-rate synergies of about $100 million as we exit 2004." Hub Group reported a 170 percent increase in third quarter earnings and a stronger than ever balance sheet. Transportation-related revenue in the third quarter, generated by the company's intermodal, truckload brokerage and logistics business units, increased 5.6 percent to $350.1 million due primarily to price increases and fuel surcharges, the company said. Marten Transport announced its net income rose 39.2 percent to $4.8 million on operating revenue, which increased 14 percent to $97.9 million, compared with $3.4 million on revenue of $85.9 million a year ago. Operating revenue included fuel surcharges of $6.8 million compared with $3.1 million last year. Fuel prices were high during the entire quarter with a steep increase during the last six weeks. Marten Chairman and President Randolph Marten said, "Competition for high-quality drivers remains intense, and we expect this situation to continue for the foreseeable future. During the quarter, we increased our driver incentives." Driver turnover was under 60 percent. The company continued to upgrade its fleet during the quarter with the purchase of 206 tractors and 247 trailers.
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