Knight Transportation profit falls on weak pricing

Knight Transportation 3rd-quarter profit falls 18 percent as weak pricing hurts revenue

• On 4:45 pm EDT, Wednesday October 21, 2009

PHOENIX (AP) -- Knight Transportation Inc. said Wednesday its third-quarter profit fell 18 percent as weak consumer spending continues to hurt freight markets, and the trucking firm warned that demand isn't picking up fast enough to support price increases.

Net income for the three months ended Sept. 30 slipped to $13.1 million, or 16 cents a share, from $16 million, or 19 cents per share, a year earlier. Revenue fell 17 percent to $173.1 million from $209.7 million a year earlier.

Profit matched expectations of analysts surveyed by Thomson Reuters, while revenue topped the average forecast of $164.6 million.

The company said it grew the number of loads it hauled in the quarter by 10.2 percent year-over-year. But while it has seen a modest, steady increase in volumes as the year has progresses, freight demand is still too weak to justify raising rates -- which is hurting revenue.

Knight had $72.5 million in cash and no debt as of Sept. 30. The company said its balance sheet, comparatively strong to certain rivals, will help it be able to take advantage of opportunities to capture market share as the economy improves.

The company also said it saw benefits during the quarter from lower insurance and claims expense, which it credits to worker training and manangement efforts at reducing accidents.

Shares fell 68 cents, or 3.7 percent, to close at $17.79.

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