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Equipment Sales Lift Heartland Express Back to Profitability in Q2

Heartland Express returned to profitability in the second quarter, driven largely by gains from equipment disposals totaling $22 million year-over-year. The North Liberty, Iowa truckload carrier reported net income of $10.6 million, or 14 cents per share, compared with a 14-cent loss in the prior-year quarter. Without the equipment gains, the company's operating ratio would have been closer to 103 percent. Revenue declined 13 percent to $184 million as the company strategically culled underutilized fleet assets. CEO Mike Gerdin attributed improved results to stronger freight volumes and better customer pricing amid industry capacity constraints. Operating cash flows reached $36 million in the first half, allowing Heartland to reduce net debt by $33 million to $73 million. The company maintained $89 million in available credit and remained in compliance with financial covenants.