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  • O

    V E R N I T E T R A N S P O R TAT I O N

OVERVIEW

Overnite Transportation is one of the nation’s largest less-than-truckload (LTL) carriers. With 13,000 employees, 20,000 trailers and 5,300 tractors, Overnite serves over 45,000 points in all 50 states, Canada, Mexico and U.S. territories. More than 90 percent of the company’s revenues are derived from its LTL business, with the remainder derived from truckload services and value-added services that support the core LTL business. Through 166 service centers, Overnite can offer customized intrastate, regional, national, next day and two-day major-market transportation services.

During 1999, Overnite continued to make significant progress in

developing and implementing innovative, new transportation services

for its customers. Financial results in the fourth quarter were adversely

affected by disruptions caused by the organizing efforts of the International

Brotherhood of Teamsters. Despite this distraction, Overnite maintained its

focus on delivering value through customer service and finished the year

with a record on-time performance level of 97%.

FINANCIAL REVIEW

Operating revenues grew $28 million or 3% in 1999 to $1.1 billion. Growth was attributable to yield-enhancing initiatives and strong volumes in the second and third quarters. Operating expenses grew 6% or $62 million, primarily as a result of increased wages and benefits and higher

expenses incurred to maintain cus- tomer service and security during the Teamsters job action ($27 million). Net income fell 30% to $28.5 million, and the operating ratio rose to 98.1% from 94.8% in 1998.

Fuel and utility expense was up $3 million or 7%, as a result of high- er prices and higher consumption.

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