Swift Transportation Reports Record 4th Quarter Profit

The trucking company Swift Transportation Co. reported record fourth quarter income and revenue on Wednesday.

Net income totaled $58.5 million, up from $45.3 million the same time a year earlier, while basic earnings per share were 41 cents compared to 32 cents during the same time in 2013 for the Arizona-based company.

Total revenue was $1.14 billion in the most recent quarter compared to $1.08 billion for the 2013 final quarter.

Swift also reported its full-year numbers for 2014 showing revenue totaled $4.3 billion compared to $4.1 billion in 2013. Net income last year totaled $161.2 million compared to $155.4 million a year earlier, or $1.14 basic earnings per share last year compared to $1.11 for 2013.

“This quarter we continued to benefit from the strategic driver-friendly initiatives implemented earlier in the year,” Swift said in its letter to shareholders. “Our driver turnover continues to be lower than the industry average, our unmanned truck count remains low, and our academies remain full. We are also encouraged by the positive trends, both financial and operational, generated by most of our reportable segments this quarter, specifically truckload, intermodal and Central Refrigerated Services.”

In Swift’s truckload operation, revenue, less fuel surcharges, for the fourth quarter of 2014 increased $28.8 million, or 6.1%, over the same quarter in 2013, despite a 2.7% reduction in its average operational truck count year-over-year, according to the company. This revenue growth was the result of a 6.4% year over year increase in revenue, less fuel surcharge, per loaded mile and a 2.5% increase in loaded miles per tractor per week.

The company’s dedicated operation saw revenue, less fuel surcharge, grow 28.8% to $202.5 million in the fourth quarter of 2014 from the fourth quarter of 2013. This was driven by multiple new contracts that started over the last twelve months, which led to a 30.7% increase in the division’s average operational truck count year-over-year, the company said. Weekly revenue, minus fuel surcharge, per tractor, decreased 1.4% to $3,210 due to the varying operational requirements of new contracts.

Revenue, less fuel surcharge in the company’s Central Refrigerated Services business for the fourth quarter of 2014 decreased 12.8% to $84.2 million compared to the same quarter in 2013, primarily driven by a 10.4% reduction average operational truck count year-over- year, according to Swift. However, it noted the truck count grew 178, or roughly 10% from the beginning to the end of the quarter, as the driver-based initiatives and other structural gained momentum.

Swift reported weekly revenue, minus fuel surcharge in this division, per tractor, decreased 2.7% to $3,558, primarily due to freight mix changes fleet growth, caused by 7.4% reduction in loaded miles per truck, per week, offset by a 5.1% increase in revenue, minus fuel surcharge, per loaded mile.

Intermodal revenue, minus fuel surcharge, grew 6.3% in the fourth quarter of 2014 compared to the same period in the prior year driven by an increase of 1.6% in revenue, less fuel surcharge, per load, and a 4.6% increase in load count.

“Despite these many accomplishments, we did experience some disappointments in 2014, including severe winter weather throughout the first quarter, a challenging driver market and our slow reaction to address driver pay, underestimating the cultural and operational differences between Swift and Central Refrigerated and the disruption caused by the systems integration, growing pains and start-up costs in our Dedicated segment, and discouraging claims trends,” Swift said.

For 2015 Swift is projecting adjusted earnings per share of between $1.64 and $1.74.