Indianapolis-based Celadon Group Inc. (NYSE: CGI) is reporting fiscal fourth quarter net income of $1.6 million, down sharply from $12 million during the same period the previous year. The company says the drop was due in part to lackluster freight volumes, and industry overcapacity.
The company is also reporting fiscal year 2016 net income of $24.9 million, down from $37.2 million the previous year. "The combination of industry overcapacity, and sluggish freight volumes negatively impacted our average revenue per loaded mile, which compressed our variable and fixed cost margins," Celadon said in its earnings report.
Celadon says revenue increased 4.3 percent for the quarter and 18.3 percent for the fiscal year. The report follows a 40 percent decline in net income during the fiscal third quarter.