INDIANAPOLIS (AP) ¿ Celadon Group Inc. on Tuesday reported that its fiscal fourth-quarter profit dropped 92 percent as the weak economy continued to drag down its freight business. The transportation company reported that it earned $167,000, or 1 cent per share, for the quarter, down from $2.2 million, or 10 cents per share, in the same quarter last year. Revenue fell 24 percent to $116.9 million, as its freight revenue dropped 11 percent to $104.2 million and income from fuel surcharges decreased 66 percent to $12.8 million. The results fell short of Wall Street expectations. Analysts expected the company to earn 3 cents per share for the quarter on revenue of $117.2 million. Celadon CEO Steve Russell said while the slow business reflects the weak economy, there was a small pickup in business in June. He noted the company has been able to offset the impact of some of these challenges with cost reductions in the company and lower fuel costs. The company has also been able to reduce its borrowing and strengthen its balance sheet. Celadon said it amended its revolving credit agreement to reduce the maximum available borrowing to $40 million and adjust financial covenants. The reduction in maximum borrowing will reduce unused borrowing fees, Celadon said.
For the full fiscal year, net income fell 61 percent to $2.6 million, or 12 cents per share, from $6.5 million, or 29 cents per share, in the prior year. Revenue decreased 13 percent to $490.3 million. Shares of the company fell 16 cents to close at $8.92.