Werner Enterprises reported improved revenues and earnings for the fourth quarter and for 2010, with fourth-quarter profit rising 34% on higher freight demand.
The truckload carrier's net income was $24.1 million, or 33 cents per share, up from $18 million, or 25 cents, a year earlier. Revenue rose 5% to $463.2 million.
For the full year, Werner's profit rose to $80 million, or $1.10 per share, from $56.6 million, or 79 cents. Revenue improved to $1.82 billion, from $1.67 billion.
Average revenues per total mile increased 4.2% in fourth quarter 2010 compared to fourth quarter 2009 due to rising contractual pricing, higher spot market rates and a lower average percentage of empty miles. In the first half of 2011, the company notes, a significant amount of business will become eligible for rate increases through contractual renewals or repricing opportunities.
Werner's overall revenues climbed 5%, year-over-year, to $463 million, while the company's truckload revenues were up only 3%, y/y, to $328 million. The company says it remains committed to keeping its fleet size at approximately 7,300 trucks. Its primary objectives continue to be expanding operating margins and improving returns on assets, equity and capital. The company continues to diversify its business model.
Werner notes that the driver recruiting and retention market became more competitive beginning in second quarter 2010, which continues into first quarter 2011.
"We anticipate that the driver market will become more challenging during 2011," the company said it its earnings release. "While historically higher national unemployment rates have aided our driver recruiting and retention efforts, we believe that an improved freight market, extended unemployment benefit payment programs and changing industry safety regulations are tightening driver supply. While we are not immune to fluctuations in the driver market, we continue to believe we are in a better position in the current market than many competitors because over 70% of our driving jobs are in more attractive, shorter-haul Regional and Dedicated fleet operations that enable us to return these drivers home more frequently."
In third quarter 2010, Werner began buying new trucks with the 2010-standard engines to replace older trucks we sell or trade. Net capital expenditures in 2010 were $119 million. Company officials expect to increase that in 2011 to a range of $150 million to $200 million, based on a more normalized replacement cycle for trucks and trailers.
The truckload carrier's net income was $24.1 million, or 33 cents per share, up from $18 million, or 25 cents, a year earlier. Revenue rose 5% to $463.2 million.
For the full year, Werner's profit rose to $80 million, or $1.10 per share, from $56.6 million, or 79 cents. Revenue improved to $1.82 billion, from $1.67 billion.
Average revenues per total mile increased 4.2% in fourth quarter 2010 compared to fourth quarter 2009 due to rising contractual pricing, higher spot market rates and a lower average percentage of empty miles. In the first half of 2011, the company notes, a significant amount of business will become eligible for rate increases through contractual renewals or repricing opportunities.
Werner's overall revenues climbed 5%, year-over-year, to $463 million, while the company's truckload revenues were up only 3%, y/y, to $328 million. The company says it remains committed to keeping its fleet size at approximately 7,300 trucks. Its primary objectives continue to be expanding operating margins and improving returns on assets, equity and capital. The company continues to diversify its business model.
Werner notes that the driver recruiting and retention market became more competitive beginning in second quarter 2010, which continues into first quarter 2011.
"We anticipate that the driver market will become more challenging during 2011," the company said it its earnings release. "While historically higher national unemployment rates have aided our driver recruiting and retention efforts, we believe that an improved freight market, extended unemployment benefit payment programs and changing industry safety regulations are tightening driver supply. While we are not immune to fluctuations in the driver market, we continue to believe we are in a better position in the current market than many competitors because over 70% of our driving jobs are in more attractive, shorter-haul Regional and Dedicated fleet operations that enable us to return these drivers home more frequently."
In third quarter 2010, Werner began buying new trucks with the 2010-standard engines to replace older trucks we sell or trade. Net capital expenditures in 2010 were $119 million. Company officials expect to increase that in 2011 to a range of $150 million to $200 million, based on a more normalized replacement cycle for trucks and trailers.
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