Trucker Covenant Loses $13.6 Million

Carrier’s $11.6 million investment in logistics consultant wiped out

Truckload carrier Covenant Transportation Group lost $13.6 million in the third quarter on freight revenue, excluding fuel surcharges, of $133.3 million. Freight revenue fell 18.2 percent from third quarter a year ago.
But for an inopportune investment, Covenant might have reduced its losses from $3.4 million a year ago to $2 million. However, a non-cash impairment charge of $11.6 million represents the near total loss of Convenant’s 12.4 percent equity investment in logistics consultant Transplace.
The company reduced its average tractor fleet by approximately 322 trucks, or 9.4 percent, compared with the third quarter of 2008, increasing miles per tractor by 0.8 percent. Freight rates, measured by average freight revenue per total mile, decreased by 9.4 percent compared with the third quarter of 2008. Rates were flat in comparison with the second quarter.
The company reduced salaries, wages, and benefits expenses by 10.6 percent per mile.
Trucker Covenant Loses $13.6 Million | Journal of Commerce

Some Trucking Companies also had a BIG bounce