Indianapolis-based Celadon Group Inc. (NYSE: CGI) is reporting fiscal second quarter net income of $1.3 million, down from $6.6 million during the same period the previous year. The company says the decrease is due to several factors, including cost pressures and a decline in used equipment sales.
Celadon says, despite the "disappointing" quarterly results, the company achieved several goals, including reducing its net debt by about $64 million. The company also completed its new joint venture during the quarter.
"With the joint venture transaction successfully closed, an improvement in the freight market widely expected during 2017, and an operating plan focused on optimizing the allocation of irregular route loads between our asset based and logistics divisions, we expect improved results with the beginning of our 2018 fiscal year," the company said in a news release.
Last month, Celadon announced it was planning to invest $28 million into a new headquarters facility in Hancock County.