U.S. Xpress Enterprises posted a nearly $30 million operating loss for Q1, driven by a collapse in its truckload segment.
While the carrier’s brokerage unit reported an operating income of $393,000 for the quarter, the profits were a drop in the bucket compared to the truckload unit’s $30.2 million operating loss.
The combined figures led to a $29.85 million operating loss for the company, according to a quarterly securities document filed Wednesday.
U.S. Xpress profits falter in recent quarters
The hit comes as Knight-Swift Transportation Holdings seeks to close an acquisition of the Tennessee-based carrier.
“Our profitability decreased primarily due to increased insurance claims and premiums of $18.8 million, a 3.5% decrease in average revenue per mile, higher net fuel costs and a $3.0 million charge related to the Merger, partially offset by a 12.5% increase in our in our available tractors and a $0.9 million improvement in our Brokerage operating income,” U.S. Xpress said in the securities filing.
That meant the cost for insurance claims and premiums was $38.9 million for the quarter.
U.S. Xpress has reported operating losses in five of its past six quarters. In 2022, the company posted a full-year operating loss of $22 million, according to an earnings release.
Struggling finances last year came with layoffs announced in Q3. The company did not immediately respond to a request for comment about layoffs and its pending Knight-Swift deal.