Although the company grew last year, Schneider National is taking steps to deal with the recession, including freezing pay.
The privately held, Wisconsin-based company posted revenues of $3.7 billion in 2008, up from $3.4 billion in 2007. In addition to growing revenue, Schneider achieved its earnings plan in 2008, continuing the company's 74-year track record of positive financial results.
However, noting that the freight transportation market "has been, and will continue to be, in a deep recession," company officials announced this week that Schneider implement further contingency plans designed to protect associates, customers and the company from the turbulent economy and to ensure its long-term success. Plans include suspending pay increases in 2009 for all associates and deferring funding for retirement plans and 401(k) company-matches until year-end.
The contingency plan affects all of the company's 21,000-plus management, administrative, driver, maintenance and distribution center associates. All adjustments will be reevaluated at year end.
"The transportation and logistics industry faced tremendous challenges in 2008 -- from unprecedented fuel price volatility to unusual weather dynamics to the continuing freight recession," said John Brenholt, chief financial officer. "We were successful in light of all these challenges due to the commitment and creativity of our associates.
"There's no doubt that these market conditions are some of the most difficult we've seen in decades," said Brenholt. "Carriers are exiting the industry due to the environment, and many competitors are reducing the size of their fleets and running fewer trucks. Schneider is responding to industry challenges in a different manner; we're expanding our core services and making decisions to help control our destiny in what's looking like a very difficult 2009."
The privately held, Wisconsin-based company posted revenues of $3.7 billion in 2008, up from $3.4 billion in 2007. In addition to growing revenue, Schneider achieved its earnings plan in 2008, continuing the company's 74-year track record of positive financial results.
However, noting that the freight transportation market "has been, and will continue to be, in a deep recession," company officials announced this week that Schneider implement further contingency plans designed to protect associates, customers and the company from the turbulent economy and to ensure its long-term success. Plans include suspending pay increases in 2009 for all associates and deferring funding for retirement plans and 401(k) company-matches until year-end.
The contingency plan affects all of the company's 21,000-plus management, administrative, driver, maintenance and distribution center associates. All adjustments will be reevaluated at year end.
"The transportation and logistics industry faced tremendous challenges in 2008 -- from unprecedented fuel price volatility to unusual weather dynamics to the continuing freight recession," said John Brenholt, chief financial officer. "We were successful in light of all these challenges due to the commitment and creativity of our associates.
"There's no doubt that these market conditions are some of the most difficult we've seen in decades," said Brenholt. "Carriers are exiting the industry due to the environment, and many competitors are reducing the size of their fleets and running fewer trucks. Schneider is responding to industry challenges in a different manner; we're expanding our core services and making decisions to help control our destiny in what's looking like a very difficult 2009."
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