Fuel Prices, Used Truck Sales Affect Werner Earnings
May 18, 2000
Werner Enterprises, Omaha, NE, announced yesterday that continued high fuel prices and a weak market for the sale of used trucks are affecting earnings.
If fuel prices remain at current levels and the market for used trucks does not improve, it is estimated that second quarter 2000 earnings will be negatively impacted by 10 to 15 cents per
While the company says it has made "substantial progress" in collecting fuel surcharges, earnings are impacted for amounts not reimbursed by customers including empty miles between freight shipments, out-of-route miles caused in part by driver home time needs, and truck idling.
In addition to the impact of high fuel prices, the used truck market has weakened due to increased inventories of new and used trucks in the marketplace and other factors.