Heartland Express earnings helped by lower fuel costs

Declining fuel prices and a strong demand for truckload freight services helped Heartland Express post sharply higher fourth-quarter and annual profit and operating revenue.

The North Liberty-based company reported fourth-quarter net income of $21.5 million, or 25 cents per share, up 36 percent from $15.8 million, or 18 cents per share, in the final quarter of 2013. Fourth-quarter operating revenue rose 10.7 percent to $203 million from $183.3 million in the fourth quarter of 2013.

Fuel costs dropped from $51.4 million in the fourth quarter of 2013 to $43.3 million in the same period of 2014.

For all of 2014, Heartland Express posted net income of $84.8 million, or 97 cents per share, up 20.2 percent from $70.6 million, or 83 cents per share, in 2013. The company reported record operating revenue of $871.4 million in 2014, a 49.7 percent increase from $582.3 million in 2013.

With the acquisition of Gordon Trucking in November 2013, Heartland Express expanded its service area from predominantly east of the Rockies to a coast-to-coast operation.

The expanded capacity network and customer base has allowed Heartland Express to become more diversified, the company said. No customer accounted for more than approximately 8.5 percent of the company's total operating revenue in 2014. Heartland Express took delivery of 462 new trucks during the fourth quarter, with the average age of its fleet at two years. Approximately 1,500 new trucks are scheduled to be received during this yearThe estimated average age of the company's tractor fleet at the end of 2015 will be approximately 1.3 years.

Heartland Express said the average age of its trailer fleet was 4.4 years at the end of 2014, compared with 4.6 years on Dec. 31, 2013. The company said it plans to continue taking advantage of a favorable used trailer market.