MENU
SEARCHThree trucking fleets issued their third quarter earnings reports on Thursday, with two showing profits increasing significantly from the same time a year earlier, while the third was healthy but nearly the same as it was a year earlier.
Three trucking fleets issued their third quarter earnings reports on Thursday, with two showing profits increasing significantly from the same time a year earlier, while the third was healthy but nearly the same as it was a year earlier.
Werner Enterprises Inc. reported net income surged 19% in the third quarter, totaling $22.5 million, while earnings per share improved to 31 cents from 26 cents a year earlier.
The earnings include a gain on the sale of real estate of $6.5 million, or 6 cents per share, plus $3.4 million of losses on equipment sales, or 3 cents per share.
Revenue edged higher by 4%, totaling $528.6 million.
Third quarter 2017 freight demand in the Nebraska-based company’s truckload fleet improved throughout the quarter, according to the company.
“In July and August 2017, freight trended better than normal, and meaningfully better than the challenging freight market of third quarter 2016,” the company said in a statement. “As we moved into September, the freight market strengthened further due in part to the significant disruption caused by two major hurricanes in south Texas and Florida.”
Werner said the hurricanes resulted in short-term costs in September due to out-of-route miles, higher fuel costs, equipment issues and driver domicile issues, and the multiple days of school closings at its Florida-based driving schools negatively impacted driver hiring.
“At the same time, these events improved spot market pricing and further widened the positive gap between demand and capacity, which better positions the freight and contractual rate markets going forward,” the company said. “Freight volumes thus far in October 2017 have been seasonally better than normal."
Werner ended the third quarter 2017 with 7,375 trucks in its truckload segment, a year-over-year increase of 200 trucks and an increase of 60 trucks from the second quarter. Its dedicated unit ended the quarter with 3,955 trucks (54% of its total truckload segment fleet) compared to 3,825 trucks at the end of third quarter 2016.
The parent to trucking companies Covenant Transport, Southern Refrigerated Transport (SRT) and others, reported its profits skyrocketed 58.6% in the third quarter. Covenant Transportation Group Inc. had net income of $4.6 million, or 25 cents per share, compared with net income of $2.9 million, or 16 per share, in the third quarter of 2016.
Total revenue for the Tennessee operation was $178.6 million, an increase of 8.6% compared with the third quarter of 2016.
"Overall, freight demand was strong and trucking capacity was tight during the third quarter. The market improved each month and has continued at a strong level in October. Equipment utilization measured by miles per tractor improved in July and August,” said Chairman and CEO David R. Parker. “However, significant disruption of freight activity from the two hurricanes depressed September utilization.”
He noted the operating loss at SRT, Covenant's solo-driver refrigerated truckload subsidiary, narrowed from the second quarter and “reflected a substantial improvement over the operating loss SRT recognized in the third quarter of 2016.”
Parker said the improved year-over-year results reflect improvement in average rate per total mile, as well as better utilization, even with the disruption to SRT’s freight network resulting from the hurricanes in the third quarter.
In contrast, Marten Transport Ltd. reported net income was nearly the same in the third quarter, totaling $7.9 million, or 14 cents share, compared with $8.4 million, or 15 cents per share, a year earlier.
Revenue in the most recent quarter was also nearly unchanged from the same time in 2016, totaling $170.7 million for the Wisconsin-headquartered company.
“The improvement in our revenue per tractor for the third quarter did not offset the increase in our operating expenses related to insurance and claims and fuel, the decrease in our gain on disposition of revenue equipment and the negative impact of the recent hurricanes on our Texas and Southeast operations,” said Chairman and CEO Randolph L. Marten.
The unanimous SCOTUS ruling in the closely watched Montgomery v. Caribe case allows state negligence claims against freight brokers that hire unsafe motor carriers, raising new liability and vetting concerns among brokers.
Read More →
FMCSA's long-awaited registration system promises a single portal — and tighter fraud controls. And there are steps you need to take by May 14.
Read More →
New Fleet Advantage research shows generative AI adoption has exploded among private fleets. But poor data integration and weak ROI tracking are preventing fleets from unlocking AI’s full operational and financial value.
Read More →
Seven years into deploying Phillips Connect’s smart trailer platform, Nussbaum Transportation has extended trailer life from 10 to 15 years.
Read More →
How a former commercial vehicle enforcement officer turned director of safety at K&B Transportation is embracing real-world safety technology.
Read More →
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 →
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 →
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 →
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 →
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 →
