ExpediterWorld.com®

The Swift and Knight Transportation companies on Wednesday reported profits that beat analysts' estimates for the past quarter, largely in part to growing commerce.

Swift stock prices were among the leading gainers of the day, rising 73 cents, or about 7 percent, to $10.73 in regular trading. Its share price rose as high as 12 percent.

The two Phoenix-based trucking companies reported strong freight volumes during the holiday season, which is consistent with a freight-tonnage report this week from the American Trucking Association in Arlington, Va.

The association said its seasonally adjusted for-hire truck tonnage climbed 10.5 percent in December compared with a year before -- the largest over-the-year gain since July 1998. November tonnage was up 6 percent.

Bob Costello, chief economist for the trucking association, said he was surprised at the magnitude of the gain.

"Not only did truck tonnage increase due to solid manufacturing output in December, but also from some likely inventory restocking," he said.

Trucking is often a barometer of the economy because it represents two-thirds of all domestic freight, including manufactured and retail goods, he said.

Swift, the largest carrier in North America, reported fourth-quarter net income of $36.8 million, or 26 cents a share, compared with a loss of $48.3 million, or 66 cents a share, a year earlier.

Excluding one-time charges , Swift earned 29 cents a share. Analysts had estimated 24 cents a share.

A 4 percent increase in trucking revenue and improved pricing helped Swift boost overall quarterly revenues 10 percent to $860.7 million, compared with a year earlier.

Another factor that helped was the company's continued reduction in its "deadhead percentage," or the amount of time trucks travel empty without bringing in revenue. That percentage fell to 11.7 percent in the fourth quarter, compared with 12.3 percent in the year-ago quarter.

Knight Transportation Inc. said its net income grew 7.6 percent to $17.5 million, compared with $16.2 million a year earlier. The per-share profit increased 14 percent to 22 cents, compared with 19 cents in the fourth quarter of 2010.

Including an accounting adjustment, net income grew 30 percent to 22 cents, and net income grew 22.7 percent to $17.5 million.

Analysts had estimated per-share earnings of 21 cents. Knight's share price grew 2.9 percent to $16.61 on Wednesday.

Excluding fuel surcharges, revenues for the quarter rose 14.6 percent to $181 million. With fuel surcharges, they grew 19 percent to $224 million.

For the year, diluted earnings for Swift ended at 65 cents, compared with a loss of $1.98 in 2010.

And for Knight, they reached 74 cents, an almost 2 percent increase from a year before.

Source: azcentral