The asset-light trucking operation, Universal Truckload Services, has reported first quarter 2014 net income of $8.1 million, or 27 cents per basic and diluted share, on total operating revenues of $279.4 million.
This compares to $11.4 million, or 38 cents per basic and diluted share, during the first quarter of 2013, on total operating revenues of $248.1 million. This represents a 29% decline in income and an 11% drop in revenue.
Included in first quarter 2014 results for the Michigan-based company are $25.3 million of revenues from Westport Axle Corporation, which was acquired last December..
Excluding results from this acquisition, Universal’s operating revenues grew a composite 2.4% in the first quarter of 2014 to $254.1 million, compared to $248.1 million in the first quarter of 2013.
“Universal’s first quarter financial results reflect anticipated top line demand across our business units, including from Westport, which is benefiting from solid demand for heavy truck manufacturing,” said Scott Wolfe, CEO. “Our truckload transportation business and intermodal drayage business, in particular, also benefited from good demand in certain markets throughout the first quarter and improved pricing as the quarter proceeded.
He said Universal’s profitability “reflects the cost impact and service performance challenges caused by harsh weather conditions that endured through February, which especially affected our continuing logistics operations.”
Looking ahead, Wolfe said the company anticipates stable demand and “a good pricing environment for transportation services, particularly in the energy and steel industries, and a return to normalized margins from the operations that we include and report in our logistics segment.”
More details are on the Universal Truckload Services website.