Nebraska-based Werner Enterprises Inc. said revenues increased 2 percent to $503.9 million in first quarter 2007 compared to $491.9 million in first quarter 2006. Earnings per share decreased 24 percent
to $.21 per share in first quarter 2007 compared to $.27 in first quarter 2006.
An increase in truck capacity and softness in freight demand made for a continued challenging market in first quarter 2007. In addition, rising fuel prices and the effects of significant winter storms placed added pressures on the cost side.
January 2007 began with an unusually low level of freight demand. Freight bookings were lower each week in first quarter 2007 compared to the same weeks in each of the prior three years. However, Werner experienced the typical seasonal improvement in freight demand as first quarter 2007 developed from January to March.
The softness in the housing and automotive sectors that are not large markets for Werner Enterprises, caused carriers that serve these markets to compete more aggressively in the consumer non-durable markets principally served by the company. In addition, moderating economic growth and inventory tightening also contributed to lower freight volumes. These factors and the significant increase in truck supply caused by the large truck pre-buy led to a competitive environment in first quarter 2007.
The driver market remains challenging, but is less difficult than a year ago. Normally going into the spring season, the driver market is very difficult due to seasonal construction and housing jobs that become available with improving weather conditions. The current weakness in these industries and other factors are helping improve the company's driver availability.