Celadon Group Incorporated reports a second quarter net income of $9 million, which is $4 million higher than its second quarter of 2011. The group’s revenue has increased 4%, to a total revenue of $157.5 million.
Celadon credits the increased revenue with the company’s reduction in operating costs.
Celadon’s operating expenses, excluding fuel surcharges, was 87% for the second quarter of 2012, compared to 90% for the second quarter of 2011.
The company credits its increased net income with a reduction in equipment, operation and maintenance costs. Celadon’s average tractor age is 1.5 years old and its average trailer age is 2.8 years old, newer equipment traditionally requires less maintenance than older equipment.
“CGI reported that it was able to increase its average seated count by 7.2% due to acquisitions the company made during the year. This gives CGI more capacity that will allow it to increase miles as fleets exit the market and position the company to take advantage of business opportunities as the economic freight market improves,” Trucking Info reported.