Swift Transportation Posts Higher Profit, Lower Revenue

Trucking company Swift Transportation Co., which has adopted cost controls including scaling back its fleet amid tough market conditions, posted a 4.7% profit increase in the third quarter despite lower revenue.

Swift said excess capacity, high customers inventories and sluggish demand continued to pressure volume and pricing in the quarter.

The company affirmed its full-year guidance for earnings excluding items of $1.30 to $1.40 a share.

Swift shares rose 2.2% to $20.73 in after-hours trading.

Last week, J.B. Hunt Transport Services Inc. said demand was tepid, although a sharp increase in its Integrated Capacity Solutions business helped it post a 7% revenue increase. Also last week, Werner Enterprises Inc. reported a 5% revenue decline, but said freight demand in the quarter showed gradual improvement from the second quarter.

Swift said Sept. 8 that Chief Executive Jerry Moyes w ill retire at the end of the year. Mr. Moyes launched the company in 1966 with a single truck.

Mr. Moyes will serve as co-CEO with Richard Stocking, Swift's chief operating officer, through the end of the year.

Over all, Swift posted net income of $38 million, or 28 cents a share, up from $36.3 million, or 25 cents a share, a year earlier. Revenue fell 4.9% to $1.01 billion, while revenue excluding fuel surcharges declined 2.6% to $929.7 million.

Analysts polled by Thomson Reuters projected earnings of 32 cents a share on revenue of $1.03 billion.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

October 24, 2016 18:55 ET (22:55 GMT)

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