Trucking and logistics company Werner Enterprises saw its profit slip in the second quarter of the year despite increased revenue.
Net income fell 1% to $25.6 million, or 35 cents per share, from $25.8 million in the first quarter, also 35 cents per share, while revenue moved higher by 7% to $542.1 million from $506.6 during the same time.
The Nebraska-based operation said freight demand, as measured by its daily morning ratio of loads available to trucks available in its one-way truckload network showed consistent strength, and the company was overbooked with more available freight than available trucks at the start of each day throughout second quarter 2014.
For the first six months of the year revenue was 3% higher compared to the same time in 2013, at $1.03 billion while net income was 8% lower at $40 million.
“A tight capacity market combined with a gradually firming economy were the primary contributing factors,” the company said in a statement. “This trend has continued through the first three weeks of July 2014. Truck capacity is being constrained by an extremely challenging driver market, accelerating trucking company failures and heightened regulatory cost increases for truck ownership and safety; thus, we expect this favorable freight trend will continue.”
Average revenues per tractor per week, net of fuel surcharge, increased 4.9% in second quarter 2014 compared to second quarter 2013.
“Despite the final quarter of an unfavorable headwind from the driver hours of service changes, which became effective on July 1, 2013, our average monthly miles per truck increased 2.8% in second quarter 2014 compared to second quarter 2013 and grew sequentially by 5.6% from first quarter 2014,” the company said.
More information is available on the Werner Enterprises website.