Werner Earnings Drop Due to Fuel Prices
April 17, 2000
Werner Enterprises, Omaha, NE has reported a drop in earnings for the first quarter ended March 31, 2000 due to higher fuel prices. Operating revenues increased 21% to a record $291.4 million, compared to $241 million in the first quarter of 1999. Earnings per share decreased to $.22/share from $.27 /share.
Chairman and CEO Clarence Werner said high fuel prices reduced earnings by approximately 10 cents per share for the quarter. "Over the last few months, we have increased our focus on improving our margins and returns," he said. "We contacted our customers to explain the critical need for improved fuel surcharge reimbursement. We significantly improved the percentage recovery of fuel reimbursement for the increased cost of fuel in first quarter 2000 compared to fourth quarter 1999."
Werner expects to transfer its existing logistics business to Internet-based transportation logistics company, Transplace.com during the third quarter.
Transplace.com is developing programs for the cooperative purchasing of products, supplies and services with the goal of lowering the costs of its six member carriers.