Werner Enterprises Inc., Omaha, Neb., reported its eleventh consecutive year-over-year quarter of higher operating revenues and earnings for the second quarter ended June 30, 2004.
Operating revenues increased 13% to $411.1 million compared to $362.3 million in second quarter 2003. Net income increased 9% to $21.6 million compared to $19.9 million in second quarter 2003.
"Freight demand and pricing continued to strengthen in second quarter as truckload industry capacity struggled to keep up with an improving freight economy," said Chairman and Chief Executive Officer Clarence (C.L.) Werner. "We were consistently overbooked during the quarter and expect a further tightening of truckload capacity in the second half of 2004. We once again increased our net income and earnings, despite pressures from abnormally high fuel costs and an extremely competitive driver market."
A substantial portion of the company's freight is under contract with customers and provides for annual pricing increases. Much of this business renews in the latter part of third quarter and fourth quarter. To recoup the significant cost increases in fuel, driver pay, equipment and insurance discussed in subsequent paragraphs and to improve margins, the company will be seeking increased year-over-year improvement in its revenue per total mile through freight rate increases. Management has continued to keep its truck capacity commitments with its partner customers, rather than shifting truck capacity to other non-partner customers that have freight available at attractive rates in this improving freight market. The company believes that standing by its truck capacity commitments with partner customers is in the best long-term interests of the company.
Operating revenues increased 13% to $411.1 million compared to $362.3 million in second quarter 2003. Net income increased 9% to $21.6 million compared to $19.9 million in second quarter 2003.
"Freight demand and pricing continued to strengthen in second quarter as truckload industry capacity struggled to keep up with an improving freight economy," said Chairman and Chief Executive Officer Clarence (C.L.) Werner. "We were consistently overbooked during the quarter and expect a further tightening of truckload capacity in the second half of 2004. We once again increased our net income and earnings, despite pressures from abnormally high fuel costs and an extremely competitive driver market."
A substantial portion of the company's freight is under contract with customers and provides for annual pricing increases. Much of this business renews in the latter part of third quarter and fourth quarter. To recoup the significant cost increases in fuel, driver pay, equipment and insurance discussed in subsequent paragraphs and to improve margins, the company will be seeking increased year-over-year improvement in its revenue per total mile through freight rate increases. Management has continued to keep its truck capacity commitments with its partner customers, rather than shifting truck capacity to other non-partner customers that have freight available at attractive rates in this improving freight market. The company believes that standing by its truck capacity commitments with partner customers is in the best long-term interests of the company.
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