Swift Transportation has announced its financial results for the fourth quarter and full year ended December 31, 2014. It reported revenue of $4.30bn, an increase of 4.38% year-on-year. The company also recorded an EBITDA of $572.2m, which represented a decline of 4.65% compared to 2013’s result. Accordingly Swift’s EBITDA margin stood at 13.31%.
For the fourth quarter of 2014 Swift reported revenue of $1.14bn, an increase of 5.96% year-on-year. In contrast to the full year result the company recorded an increase of 2.39% in Q4 EBITDA to $167m, resulting in a fourth quarter margin of 14.66%.
The rise in Q4 revenue was primarily attributable to the company’s Truckload, Intermodal and Dedicated business segments which each recorded significant increases in revenue. These increases were largely the result of rising volumes and prices as the growth in demand outpaced growth in capacity over the period. New contract wins also added to revenue growth. Rising revenue during Q4 was partially offset by declining revenue in Swift’s Central Refrigerated segment which fell by 13.13% year-on-year because of a decline in average operational fleet count.
The improvement to Q4 EBITDA was largely the result of rising prices and volumes across the business and the reduction in fuel expenses that continued throughout Q4. However the rise in EBITDA was tempered by rising salary expenses and increasing insurance liability expenses related to the company’s growth.
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