Werner Expects 4th Quarter Hit From Fuel Prices
November 24, 1999
Truckload carrier Werner Enterprises says higher fuel prices will affect fourth quarter earnings.
If fuel prices and the fleet's fuel surcharge reimbursements remain at current levels,
Werner predicts a hit of around 10 cents per share on earnings.
The fleets says the average fuel price per gallon (excluding fuel taxes) is currently over 80% higher compared to the same date one year ago. Prices continued to slip around 10% from the end of November 1998 until the beginning of March 1999.
Werner says its current fuel surcharges only recover a small portion of the higher fuel cost. This is due to several factors, including: the base fuel price levels which determine when surcharges are collected, empty miles between freight shipments, out-of-route miles caused in part by driver home time needs, and truck idling.