Werner Enterprises Inc., an Omaha, Neb.-based truckload transportation company, reported its seventh consecutive year-over-year quarter of higher operating revenues and earnings for the second quarter
ended June 30, 2003.
Operating revenues increased 6% to $362.3 million compared to $340.4 million in second quarter 2002. Net income increased 20% to $19.9 million compared to $16.6 million in second quarter 2002. Earnings per share for second quarter 2003 were $.30 per share, or 20% higher than the $.25 per share earned in second quarter 2002.
"Our freight demand for second quarter ranged from flat to slightly better compared to the same period a year ago," said Chairman and Chief Executive Officer Clarence (C.L.) Werner. "We increased our revenue per total mile by 3.5% compared to second quarter 2002. We are achieving our goal of improving our operating margin which increased from 8.0% of revenues to 8.7% of revenues."
Freight demand in the beginning of April was slightly higher than the same period a year ago but returned to about the same level as a year ago for the latter part of April and the month of May. The company experienced some modest improvement in June that has continued into July. Werner measures its freight demand by continually comparing the number of available loads to available trucks on a daily basis.
The company delayed the business risk of buying new truck engines that are subject to the new emissions standards mandated by the EPA. Since there was inadequate time to test these new truck engines prior to the Oct. 1, 2002 effective date, the company significantly increased the purchase of trucks with pre-October engines. During second quarter, the company continued to bring new trucks with pre-October engines into service to replace trucks that were reaching the company's normal three-year trade/sale age. The average age of the company's truck fleet as of June 30, 2003 is 1.4 years.
The company is continuing ongoing testing of the new truck engines, in particular the Caterpillar ACERT engines and the Detroit Diesel EGR engines. Testing is still in the early stages, and the company has not made any final decisions on its engine purchases for 2004. However, the company will take delivery of approximately 325 model year 2004 trucks with Caterpillar ACERT engines in third quarter 2003. Werner plans to purchase more Caterpillar ACERT and Detroit Diesel EGR engines during the remainder of 2003.