Expenses outpace revenue for top carriers

OTTAWA — The top 97 for-hire trucking carriers generated operating revenue of $2.6 billion and operating expenses of $2.4 billion in the second quarter of 2008.

For these carriers (determined by Stats Canada as Canadian-based trucking companies earning $25 million or more annually) the second quarter year-over-year growth in expenses (+2.9%) was slightly higher than that of revenue (+2.6%).

During the previous eight quarters, on a year-over-year basis, growth in expenses exceeded growth in revenue, resulting in lower operating profits.

In the second quarter, the operating ratio (operating expenses divided by operating revenue) was 0.95 compared with 0.94 the previous year. A ratio greater than 1.00 represents an operating loss.