Werner Enterprises Inc. said operating revenues for the second quarter ended June 30, 2006 increased 9 percent to $528.9 million compared to $485.8 million in second quarter 2005.
Net income increased 11 percent to $28.0 million compared to $25.3 million in second quarter 2005. Earnings per share for second quarter 2006 were $.35 per share, or 12 percent higher than the $.31 per share earned in second quarter 2005.
"By focusing on the fundamentals of the company's truckload business and growing the revenues and operating income of its Value Added Services business, Werner produced another good quarter," said Chairman and Chief Executive Officer, Clarence (C.L.) Werner. "Thanks to the significant contributions of the outstanding men and women of Werner Enterprises, the Company achieved its 19th consecutive quarter of improved year-over-year earnings."
A substantial portion of the company's freight base is under contract with customers and provides for annual pricing increases. A significant portion of the company's non-dedicated fleet contracts renew and will be renegotiated during the second half of 2006. There continue to be several inflationary cost pressures that are impacting truckload carriers. They include: driver pay and other driver-related costs due to a difficult driver market; rising diesel fuel prices; conversion from low sulfur diesel fuel to ultra-low sulfur diesel fuel; new engine emission requirements for newly manufactured trucks beginning in January 2007 that are increasing the truck purchase costs and lowering the miles per gallon; and rising liability and cargo insurance costs.
To recoup these cost increases, management will be seeking freight rate increases during the upcoming contract renewal period.
Net income increased 11 percent to $28.0 million compared to $25.3 million in second quarter 2005. Earnings per share for second quarter 2006 were $.35 per share, or 12 percent higher than the $.31 per share earned in second quarter 2005.
"By focusing on the fundamentals of the company's truckload business and growing the revenues and operating income of its Value Added Services business, Werner produced another good quarter," said Chairman and Chief Executive Officer, Clarence (C.L.) Werner. "Thanks to the significant contributions of the outstanding men and women of Werner Enterprises, the Company achieved its 19th consecutive quarter of improved year-over-year earnings."
A substantial portion of the company's freight base is under contract with customers and provides for annual pricing increases. A significant portion of the company's non-dedicated fleet contracts renew and will be renegotiated during the second half of 2006. There continue to be several inflationary cost pressures that are impacting truckload carriers. They include: driver pay and other driver-related costs due to a difficult driver market; rising diesel fuel prices; conversion from low sulfur diesel fuel to ultra-low sulfur diesel fuel; new engine emission requirements for newly manufactured trucks beginning in January 2007 that are increasing the truck purchase costs and lowering the miles per gallon; and rising liability and cargo insurance costs.
To recoup these cost increases, management will be seeking freight rate increases during the upcoming contract renewal period.
media brand
0 Comments
See all comments