* Knight, Hub Group Q1 profits rise
* Forward Air swings to Q1 profit
* Forward Air sees Q2 profit above estimates
April 21 (Reuters) - Freight transportation companies including Knight Transportation KNX.N posted higher first-quarter results on improved volumes, and said the market was on track for a solid recovery.
“The operating environment grew increasingly positive during the first quarter 2010,” Knight’s Chief Executive Kevin Knight said. “We appear to be firmly in a recovering truckload freight market.”
Forward Air, which swung to a quarterly profit, said the industry has entered a period of sustained recovery, and forecast second-quarter profit above Wall Street estimates.
Knight said it hauled 10.8 percent more loads this quarter and gained market share during the period.
The highly fragmented freight market in the United States has been in recession for about three years now. Excess capacity has put pressure on pricing and dented margins at truckers as well as freight brokers.
Knight, one of largest truckload carriers in the United States, reported net income of $12.3 million, or 15 cents a share, up from $11.7 million, or 14 cents a share, a year ago.
Knight, which also provides trucking brokerage services, posted a 11 percent rise in revenue at $165.7 million.
Analysts on average were expecting a profit 15 cents a share, on revenue of $159.2 million, according to Thomson Reuters I/B/E/S. [ID:nASA008W0]
Shares of the Phoenix, Arizona-based Knight closed at $21.61 Wednesday on the New York Stock Exchange.
Greeneville, Tennessee-based Forward Air posted net income of $3.4 million, or 12 cents a share, compared with a loss of $3.1 million, or 11 cents a share, a year ago. [ID:nASA008X8]
It sees second-quarter earnings of 20 cents to 24 cents a share, while analysts were expecting 17 cents a share.
The company forecast a revenue growth of 13 percent to 18 percent.
It expects to benefit from general rate increase on the linehaul portion of its airport-to-airport network from May 1.
Hub Group posted net income of $8.7 million, or 23 cents a share, compared with $6.2 million, or 17 cents a share, a year ago. [ID:nASA008W3]
Volumes at its intermodal segment jumped 16 percent.
Shares of Forward Air closed at $27.79, while Hub Group’s shares closed at $31.38 Wednesday on Nasdaq. (Reporting by Fareha Khan and A.Ananthalakshmi in Bangalore; Editing by Unnikrishnan Nair) ((firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800 Reuters Messaging: email@example.com))
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