(RTTNews) - Trucking services provider Heartland Express, Inc. (HTLD: News ) Tuesday reported a decline in profit for the third quarter, reflecting lower operating revenues affected by a reduction in fuel surcharge revenues due to lower fuel prices. The company's per share earnings for the quarter were in line with market estimates.

The North Liberty, Iowa-based company's net income for the third quarter declined 22.5% to $14.51 million or $0.16 per share from $18.72 million or $0.19 per share in the previous year.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter declined 33.3% to $113.39 million from $169.93 million a year ago. Ten analysts had a consensus revenue estimate of $125.03 million for the third quarter.

The company noted that operating revenues for the year have been impacted by the continued impact on demand due to the economic downturn and the related downward pressure on freight rates. In addition, operating revenues for the quarter were impacted by a reduction in fuel surcharge revenues of $26.0 million due to lower fuel prices.

During the quarter, the U.S. average cost of fuel was $2.60 per gallon, down 39.8% compared to $4.32 in the previous year.
For the nine-month period, net income declined 8.6% to $46.26 million or $0.51 per share from $50.62 million or $0.53 per share in the same period of the previous year. Operating revenue for the period declined 28.6% to $128.75 million from $148.65 million last year.

Heartland said that it took delivery of 690 new tractors in the third quarter of 2009 for a total of 1,151 new International Pro Star tractors in 2009. The company expects the current fleet upgrade to be completed in the fourth quarter of 2009 with the additional purchase of 449 tractors.

Efforts continue to effectively control fuel costs. The primary focus is on idle hour reductions, strategic fueling decisions, and the purchase of state-of-the-art International Pro Star trucks with increased fuel economy features and idle control technology, the company noted.

HTLD is currently trading at $14.45, down 0.30 or 1.90%, on a volume of 200K shares on the Nasdaq.

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by RTT Staff Writer

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