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

Panel discussion
Fleet Managementby Deborah LockridgeJune 12, 2026

Time is Running Out to Apply for Exclusive HDT Event

Heavy Duty Trucking Exchange connects heavy-duty trucking fleet managers with industry suppliers through one-on-one meetings, small-group discussions, educational sessions, and networking opportunities with both suppliers and other fleet managers.

Read More →
Empty trailer with worker loading a pallet of cargo
Fleet ManagementJune 10, 2026

Amazon Launches Less-Than-Truckload Freight Offering for All Businesses   

This launch is the latest addition to Amazon Supply Chain Services, a portfolio of supply chain capabilities from Amazon, including freight, distribution, fulfillment, and parcel shipping.

Read More →
Stacks of intermodal containers at port with truck driving between them

Import Cargo Volume to See Year-Over-Year Gain Again in June, Then Remain Below 2025 Levels Into Fall

After July, the report predicts a weakening in import volume as consumer uncertainty remains high and the impact of increasing inflation takes its toll.

Read More →
Ad Loading...
Equity Interest Auction
SponsoredJune 8, 2026

AUCTION OF EQUITY INTEREST IN HEAVY HAUL TRUCKING COMPANY!!

Mark your calendar: June 30, 2026 (10:00 a.m. PDT). A 37.5% ownership interest in MagnaTrans, LLC, a California limited liability company doing business as Magna Transportation Group, will be sold in an in-person and online auction to the highest bidder or bidders under Article 9 of the Uniform Commercial Code. The Rancho Cucamonga-based heavy haul and over-dimensional trucking company operates across California, Oregon, and Arizona.

Read More →
Volvo OTA updates.

Volvo Trucks Adds Unattended Over-the-Air Software Update Capabilities

The latest evolution of Volvo’s over-the-air update technology allows software updates to run while trucks are parked, helping fleets keep vehicles current without disrupting operations.

Read More →
Podcast thumbnail illustration
Fleet ManagementJune 4, 2026

How Waste Connections is Using Data, Telematics, and AI

How do you manage and maintain more than 18,000 connected trucks? Data. Lots of it.

Read More →
Ad Loading...
YouTube thumbnail showing Chuck Palmer illustration with refuse truck in background

Why Fleet Data Matters More Than Ever at Waste Connections [Watch]

Waste Connections' Chuck Palmer explains how telematics, predictive maintenance, safety analytics, and AI help keep vehicles on the road and drivers safe in this episode of HDT Talks Trucking.

Read More →
Illustration of tractor-trailer and cybersecurity
Fleet ManagementJune 3, 2026

NMFTA Launches Free, Anonymous Cybersecurity Threat Report Portal

Organizations are encouraged to anonymously report freight fraud, cargo crime, and cyber threats while gaining visibility into incidents reported across the transportation sector.

Read More →
Cover feature graphic showing AI background

AI Can Optimize a Fleet. Can It Replace Human Judgment?

Fleets fear falling behind if they don’t adopt AI quickly enough. They also fear what happens if the technology makes the wrong decision.

Read More →
Ad Loading...
Jamie Hagen owner, Hell Bent Xpress.
Fleet Managementby Jack RobertsMay 29, 2026

Jamie Hagen Gets Real About Running a Small Fleet in an Uncertain Economy

Small fleet owner Jamie Hagen says new legal risks, volatile fuel prices, and a changing freight market are forcing small carriers to rethink how they operate — and what they can afford.

Read More →