Third-quarter operating revenues increased 7 percent to $541.3 million for Werner Enterprises Inc., compared to $504.5 million in third quarter 2005. Net income increased to $24.6 million compared to $24.5 million
in third quarter 2005.
Earnings per share for third quarter 2006 were $.31 per share, or 3 percent higher than the $.30 per share earned in third quarter 2005.
"Despite the significant challenges of a softer freight market compared to the normal pickup in freight demand that typically occurs during third quarter, and unusually high insurance and claims costs, Werner Enterprises produced good results. The strength and stability of our long-term customer partnerships combined with the outstanding contributions of our employees continue to be the keys to our success," said Chairman and Chief Executive Officer Clarence (C.L.)
Werner.
During third-quarter 2006 compared to third quarter 2005, Werner experienced a significant reduction in freight demand for longer haul shipments. Freight demand for shorter haul shipments in its regional fleets remained at nearly the same level year over year. The company believes that some large retailers may be tightly controlling inventory levels, which is causing fewer longer haul freight shipments into retail distribution centers. In addition, recent weakness in the housing and automotive sectors of the economy that are not significant freight markets for the company, may be causing other truckload carriers to compete more aggressively for replacement freight in other freight markets served by the company.