Werner Enterprises, Omaha, Neb., saw revenues increase 14 percent in the third quarter to $584.1 million, compared to $510.3 million in third quarter 2007.
Even excluding trucking fuel surcharges, revenues increased 4 percent to $448.5 million in third quarter 2008 compared to $433.0 million in third quarter 2007. Earnings per share increased 5 percent to 31 cents per share in third quarter 2008 compared to 30 cents per share in third quarter 2007.
The ongoing diversification of the company's service offerings helped lessen the impact of a lackluster freight market in third quarter 2008. Customer response to these growing service offerings continues to be very positive, says the company. They include a one-way Van fleet, Dedicated, Regional, Expedited, and North America cross-border in the Truckload segment; and Freight Management, Intermodal, Brokerage and Werner Global Logistics international in the Value Added Services segment
Average monthly miles per tractor increased by 350 miles, an increase of 3.5 percent. At the same time, Werner lowered its average percentage of empty miles by 50 basis points.
Freight demand for the Company's Van Network of nearly 4,700 trucks in its Regional, Expedited and medium-to-long haul van fleets was less encouraging. The percentage of loads to trucks ("pre-books") in July, August and September 2008 were approximately the same as July, August and September 2007. The strengthening of demand the company experienced in June 2008 did not continue into third quarter. However. third quarter 2008 pre-books were relatively stable year over year, compared to weaker year-over-year pre-books experienced during the first five months of 2008. Werner believes that as a result of a significant number of carrier failures that occurred during the first half of 2008, industry capacity remained more in balance with freight demand in third quarter 2008 compared to the excess of capacity at the beginning of 2008.
Freight demand during the latter part of third quarter 2008 and the first two weeks of October 2008 has been disappointing but not unexpected, considering the turbulence and uncertainty in the financial markets, notes the company. Consumer spending is being affected by the current lack of confidence in the credit market and the stock market. Werner is planning based on the assumption that this trend will continue. The company expects this will result in lackluster shipping volumes this peak freight season.
The severe tightening of the credit and financial markets may create significant challenges for highly leveraged carriers that have financing issues or refinancing needs. Unless freight and financial market conditions improve quickly, Werner believes there is a higher probability of increased carrier failures. Werner believes its financial strength as a debt-free company places it in a unique position to capitalize on the opportunities ahead.
Even excluding trucking fuel surcharges, revenues increased 4 percent to $448.5 million in third quarter 2008 compared to $433.0 million in third quarter 2007. Earnings per share increased 5 percent to 31 cents per share in third quarter 2008 compared to 30 cents per share in third quarter 2007.
The ongoing diversification of the company's service offerings helped lessen the impact of a lackluster freight market in third quarter 2008. Customer response to these growing service offerings continues to be very positive, says the company. They include a one-way Van fleet, Dedicated, Regional, Expedited, and North America cross-border in the Truckload segment; and Freight Management, Intermodal, Brokerage and Werner Global Logistics international in the Value Added Services segment
Average monthly miles per tractor increased by 350 miles, an increase of 3.5 percent. At the same time, Werner lowered its average percentage of empty miles by 50 basis points.
Freight demand for the Company's Van Network of nearly 4,700 trucks in its Regional, Expedited and medium-to-long haul van fleets was less encouraging. The percentage of loads to trucks ("pre-books") in July, August and September 2008 were approximately the same as July, August and September 2007. The strengthening of demand the company experienced in June 2008 did not continue into third quarter. However. third quarter 2008 pre-books were relatively stable year over year, compared to weaker year-over-year pre-books experienced during the first five months of 2008. Werner believes that as a result of a significant number of carrier failures that occurred during the first half of 2008, industry capacity remained more in balance with freight demand in third quarter 2008 compared to the excess of capacity at the beginning of 2008.
Freight demand during the latter part of third quarter 2008 and the first two weeks of October 2008 has been disappointing but not unexpected, considering the turbulence and uncertainty in the financial markets, notes the company. Consumer spending is being affected by the current lack of confidence in the credit market and the stock market. Werner is planning based on the assumption that this trend will continue. The company expects this will result in lackluster shipping volumes this peak freight season.
The severe tightening of the credit and financial markets may create significant challenges for highly leveraged carriers that have financing issues or refinancing needs. Unless freight and financial market conditions improve quickly, Werner believes there is a higher probability of increased carrier failures. Werner believes its financial strength as a debt-free company places it in a unique position to capitalize on the opportunities ahead.
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