USA Truck slashes costs to turn 4Q profit

USA Truck Inc. said Thursday it swung to a profit in the fourth quarter by slashing costs to offset collapsing demand for its freight shipping services.

The company earned $599,000, or 6 cents per share, for the period ended Dec. 31, compared with a loss of $1.6 million, or 15 cents per share, last year. The most recent quarter's results included an operating asset impairment charge of 3 cents per share.

Revenue shrunk 5 percent to $116.2 million as the deteriorating economy lowered demand for bulk shipping.

Analysts polled by Thomson Reuters predicted earnings of 5 cents per share on revenue of $125.2 million. Estimates typically exclude one-time items.

"While we are pleased with our progress toward achieving our long-term strategic objectives, the deterioration in the freight environment took its toll on our performance this quarter," said Chief Executive Clifton Beckham.

In an effort to protect its bottom line, USA Truck cut its fleet size by 10 percent, or 250 tractors.

For full-year 2008 the company reported net income of $3.1 million, or 31 cents per share, compared with $140 million, or one cent per share, in 2007. Revenue grew to $535 million from $482 million.

The company said it expects fuel prices to remain low in 2009, but added that this will not be enough to offset the damage done by weakening economic environment.

Shares of USA Truck rose 44 cents, or 3.3 percent, to close at $13.94.