Werner Enterprises, Omaha, Neb., reported higher operating revenues and earnings for the second quarter of the year.
Operating revenues increased 5% to $340.4 million compared to $322.8 million in second quarter 2001. Net income increased 37% to $16.6 million compared to $12.1 million in second quarter 2001.
"We were pleased to see a strengthening of freight demand for our services during second quarter, compared to second quarter a year ago," said Chairman and CEO Clarence Werner. "For most of this quarter, daily freight volumes consistently exceeded the weaker same-day freight volumes of a year ago. This enabled us to be more selective with the freight we haul and resulted in a lower empty mile percentage, higher miles per truck, and higher revenue per mile."
According to the company, freight demand for the first half of April 2002 was about the same as the first half of April 2001. However, freight demand improved beginning with the second half of April 2002 and continued through the remainder of the quarter. Demand improved in almost all geographic and industry sectors, with more significant geographic strength in the Western and Southern United States and more significant industry strength in the Company's largest market segment, retail and consumer products.
Freight volumes were unusually stronger than normal in second quarter 2002, due in part to some shippers restocking low inventory levels and, to a lesser degree, increased shipping in the West Coast markets due to concerns about the potential for a work stoppage at the Los Angeles port. The Company does not know if it will experience these same unusually strong volumes in the third quarter and fourth quarter 2002.
Werner also reported it has been buying a larger number of pre-October 2002 trucks and engines due to upcoming new diesel engine emissions rules. Company officials say this has reduced the average age of their company truck fleet from 1.5 years at the end of December to to 1.3 years at the end of June. The company says it expects to have one of the newest fleets in the industry by the end of this year, which will enable them to temporarily suspend buying new trucks until the company is confident of the performance of the new engines.
Operating revenues increased 5% to $340.4 million compared to $322.8 million in second quarter 2001. Net income increased 37% to $16.6 million compared to $12.1 million in second quarter 2001.
"We were pleased to see a strengthening of freight demand for our services during second quarter, compared to second quarter a year ago," said Chairman and CEO Clarence Werner. "For most of this quarter, daily freight volumes consistently exceeded the weaker same-day freight volumes of a year ago. This enabled us to be more selective with the freight we haul and resulted in a lower empty mile percentage, higher miles per truck, and higher revenue per mile."
According to the company, freight demand for the first half of April 2002 was about the same as the first half of April 2001. However, freight demand improved beginning with the second half of April 2002 and continued through the remainder of the quarter. Demand improved in almost all geographic and industry sectors, with more significant geographic strength in the Western and Southern United States and more significant industry strength in the Company's largest market segment, retail and consumer products.
Freight volumes were unusually stronger than normal in second quarter 2002, due in part to some shippers restocking low inventory levels and, to a lesser degree, increased shipping in the West Coast markets due to concerns about the potential for a work stoppage at the Los Angeles port. The Company does not know if it will experience these same unusually strong volumes in the third quarter and fourth quarter 2002.
Werner also reported it has been buying a larger number of pre-October 2002 trucks and engines due to upcoming new diesel engine emissions rules. Company officials say this has reduced the average age of their company truck fleet from 1.5 years at the end of December to to 1.3 years at the end of June. The company says it expects to have one of the newest fleets in the industry by the end of this year, which will enable them to temporarily suspend buying new trucks until the company is confident of the performance of the new engines.
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