P.A.M. Transportation Reports $3.3 Million 1Q Loss

by Arkansas Business Staff  on Tuesday, Apr. 28, 2009 4:29 pm  

P.A.M. Transportation Services Inc. of Tontitown reported a first quarter net loss of $3.3 million or 36 cents a share compared with a loss of $2.8 million or 29 cents a share for the same period of 2008.

Operating revenue, which includes fuel surcharges, fell to $65.8 million for the first quarter compared to $105.8 million for the first quarter of 2008.

"While revenue for the first quarter of 2009 compared to the same quarter in 2008 was down considerably, a full one third of the decrease was in fuel surcharge revenue attributable to lower fuel prices in the first quarter 2009 compared to the first quarter of 2008," said Robert W. Weaver, president of the truckload dry van carrier. "Additionally, our truck count was reduced by 276 trucks year to year as we strive to reduce our fleet size to more closely match demand for services. With that being said, freight demand in January and February were the lightest we have encountered, with these two months resulting in the majority of the operating loss for the quarter."

Auto transport has long provided the backbone of P.A.M.'s revenue, but the company is looking at ways to grow its non-automotive business. "The automotive industry provided 26.7 percent of our revenue" for the first quarter, Weaver said, down from 45.8 percent for the same quarter of 2008.



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