Covenant profits drop in quarter
Earnings for Covenant Transport Group Inc. fell in the second quarter by 55 percent from a year ago to $1.9 million, or 13 cents per share. But profits this spring for the Chattanooga -based trucking company were still well ahead of analysts forecasts of only 7 cents per share.
Covenant’s revenues in the second quarter were 0.7 percent ahead of a year ago to $172.5 million. Covenant CEO David Parker said operating profits were comparable with last year despite higher salary costs per mile.
Tecumseh expands plant
A refrigeration compressor company will expand its factory near Tupelo, Miss., adding up to 150 new jobs over the next five years. Tecumseh Products Co., which shut down a separate engine plant in Dunlap, Tenn., in 2008, said Wednesday that it will expand its 350-employee refrigeration plant in Verona, Miss., to make a new kind of compressor.
Tecumseh officials said the $10 million expansion in Verona was picked over facilities in China, India and Eastern Europe to make its top-of-the-line compressor. The state will loan the company $4 million and give it a $600,000 grant. The Tennessee Valley Authority will provide unspecified assistance, and Lee County will abate property taxes on the new equipment and renovations.
Caterpillar profits drop in quarter
A global mining industry slump cut into second-quarter earnings at Caterpillar Inc. as companies spent less on equipment and dealers cut inventories more than Caterpillar expected. The world’s largest maker of construction and mining equipment posted a 43 percent slide in earnings and cut its profit and revenue outlook for the year.