Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Earnings Watch: Knight-Swift Affected by Merger Costs, Driver Shortage

Truckload and logistics provider Knight-Swift Transportation Holdings Inc. released third quarter earnings on Monday that showed a big drop in profit compared to a year ago, but the numbers do not paint an entirely accurate picture following the merger of the two truckload companies.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
November 6, 2017
Earnings Watch: Knight-Swift Affected by Merger Costs, Driver Shortage

 

3 min to read


Truckload and logistics provider Knight-Swift Transportation Holdings Inc. released third quarter earnings on Monday that showed a big drop in profit compared to a year ago, but officials said the numbers do not paint an entirely accurate picture following Knight Transportation's acquisition of Swift Transportation, which closed in September.

Net income totaled $4.2 million, or 4 cents per share, compared to $24.1 billion, or 29 cents per share, a year earlier for Knight Transportation alone.

Ad Loading...

Total revenue nearly doubled to $521.6 million from $280.5 million in the third quarter of 2016.

The reported results include the results of Swift Transportation only for 22 days after the Sept. 8 merger date, as well as significant merger-related costs, meaning comparisons to prior periods are not meaningful, according to the company.

“Our diluted earnings per share for the third quarter were 4 cents, which includes $12.3 million of legal and professional fees related to the merger with Swift, $6.6 million of other one-time operating expenses associated with the merger, $16.7 million of impairment of software assets identified after the merger and $2.5 million of amortization expense related to the $817.2 million of amortizable intangible assets recorded as a result of the merger,” said Dave Jackson, president and CEO.

Ad Loading...

Excluding these items, the company’s adjusted diluted earnings per share for the third quarter were 25 cents compared to 29 cents a year earlier.

"The freight environment has strengthened throughout the third quarter and into October,” Jackson said. “The non-contract market improved each month sequentially, leading to a 4.6% year over year increase in Knight’s revenue per loaded mile, excluding fuel surcharges, for the quarter.”

According to Jackson, strong freight demand is beginning to impact both the contract market and customer expectations for the 2018 bid season.

The company was able to report full quarterly numbers for Knight Transportation, which showed revenue in its trucking segment, excluding fuel surcharge, fell 4.2% to $195.8 million.

It was driven by a 3.9% decrease in operational truck count and a 3.9% decrease in miles per truck. That was partially offset by a 4.6% increase in revenue per loaded mile during the period compared to the prior year quarter, according to the company.

Ad Loading...

Knight’s logistics segment revenue increased revenue 8.8% to $56.6 million.

While the company reported numbers for Swift Transportation’s different segments, it did not provide comparisons for a year earlier, since Knight-Swift has been an entitly only  Sept. 9-30 of the third quarter. However, in a statement, the company highlighting the more significant factors influencing the different segments.

“The challenging driver market continues to be the biggest headwind faced by the Swift Truckload, Swift Dedicated, and Swift Refrigerated segments, which is pressuring our recruiting, driver wage and safety-related expenses as well as our operational truck count and utilization,” the company said. “We granted a wage increase to drivers in our Swift Truckload segment effective upon the close of the merger, which essentially made permanent the 1 cent per mile loyalty incentive we instituted when we announced the planned merger in April.”

The soft used equipment market and increasing maintenance expenses are also drags on performance, the company said.

“A strengthening freight market is developing which is supportive of yield and utilization improvement across the asset-based business units,” the company said. “Our focus is on sourcing and retaining drivers and on improving yield, safety, return on investment, efficiency and cost control.”

More Fleet Management

TEN disaster prep.
Fleet ManagementMay 1, 2026

How Fleets Can Avoid Equipment Blind Spots in Disaster Response

When the unexpected happens, how you react to, and deal with operational blind spots is critical. Here’s how to keep you recovery on track, when nothing is normal.

Read More →
Illustration of cybersecurity images with "The Cyber Stop" text
Fleet Managementby Ben WilkensApril 30, 2026

AI Security Risks for Trucking Fleets: What to Know About Deepfakes and Agentic AI

As fleets adopt artificial intelligence for routing, maintenance, and load matching, new security risks are emerging. Learn where the vulnerabilities are and how to put the right controls in place.

Read More →
Mobile tablet showing Motus screen against highway background with Motus logo

FMCSA’s Motus System Is Coming. What Fleets Need to Know Now

The long-awaited registration system promises a single portal — and tighter fraud controls.

Read More →
Ad Loading...
CargoNet 2026 Qi report.
Fleet Managementby News/Media ReleaseApril 24, 2026

Cargo Theft Incidents Fall in Q1, but Organized Crime and Impersonation Drive New Risks

CargoNet reports fewer supply chain crime events to start 2026. But losses hold steady as organized crime shifts tactics toward impersonation schemes and high-value goods.

Read More →
Graphic with light bulbs, HDT Truck Fleet Innovators logo, and the word Nominations
Fleet ManagementApril 24, 2026

Nominations Open for HDT Truck Fleet Innovators 2026

Heavy Duty Trucking is searching for forward-looking leaders at trucking fleets as nominations for HDT’s Truck Fleet Innovators 2026. Deadline is May 15.

Read More →
Illustration with trojan horse and lock with inside of cargo container in background
Fleet Managementby News/Media ReleaseApril 23, 2026

New Trojan Driver Cargo Theft Scam Bypasses Carrier Vetting Systems

Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.

Read More →
Ad Loading...
ATA Truck Tonnage Index March 2026.
Fleet Managementby News/Media ReleaseApril 22, 2026

March Truck Tonnage Posts Strongest Annual Gain Since 2022

A modest sequential increase capped the strongest quarterly performance in years, signaling continued freight momentum in early 2026.

Read More →
Toll road.
Fleet Managementby Jack RobertsApril 22, 2026

Ohio Turnpike Targets $5.2 Million in Unpaid Tolls from Trucking Firms

More than 300 carriers across 26 states have been sent to collections as the Ohio Turnpike cracks down on toll evasion and delinquent payments.

Read More →
Illustration with ATRI logo and square blocks spelling out "research"
Fleet Managementby Deborah LockridgeApril 20, 2026

'Beyond Compliance,' Regulations, Driver Coaching on ATRI’s 2026 Research List

The American Transportation Research Institute will examine driver coaching, regulatory impacts — including the "Beyond Compliance" concept —and weather disruptions that shape trucking operations.

Read More →
Ad Loading...
Brian Antonellis, senior vice president, fleet operations, Fleet Advantage.
Fleet Managementby Jack RobertsApril 17, 2026

Fleet Advantage's Brian Antonellis on the Growing Need to Replace Old Trucks

Fleet Advantage's Brian Antonellis says it's time for fleets to get back to the fundamentals of good maintenance practices. And that includes replacing older, inefficient equipment.

Read More →