Nebraska-based trucking and logistics provider Werner Enterprises reported lower second quarter revenue and profit compared to the same time a year ago.
Total revenue fell 3% to $506.7 million while net income declined 16% to $25.8 million.
Werner Second-Quarter Profit and Revenue Fall
Werner Enterprises saw its total revenue fall 3% to $506.6 million in the second quarter compared to last year, while net income dropped 16% to $25.8 million. A cold, wet April was the primary culprit.
Evan Lockridge・Former Business Contributing Editor
2 min to read
For the first six months of 2013, total revenue dropped 2% to $999.5 million from the first six months of last year. Net income fell 17% to $43.3 million.
In a statement, the company said second quarter 2013 freight demand, as measured by its daily morning ratio of loads to trucks in its one-way truckload network, was softer in April 2013 than April 2012, due in part to unfavorable temperature and weather comparisons that negatively affected retail volumes. Freight demand improved and seasonally strengthened during May and June 2013 and was comparable to May and June 2012.
“Average revenues per total mile, net of fuel surcharge, rose 1.6% in second quarter 2013 compared to second quarter 2012,” it said. “Base rate increases showed modestly positive momentum as second quarter 2013 progressed. Spot market rates were lower in second quarter 2013 than in second quarter 2012 due to lower transactional project business, particularly in the Midwest market.”
Average monthly miles per truck declined by 2.6% in second quarter 2013 compared to second quarter 2012.
In second quarter 2013, Werner says it averaged 7,134 trucks in service in its truckload segment and 45 intermodal drayage trucks. It ended the quarter with 7,150 trucks in the truckload segment, an increase of 60 trucks from the end of first quarter 2013, and 43 trucks in the intermodal segment. Its specialized services unit, primarily dedicated, ended the quarter with 3,620 trucks, or 51% of its total truckload segment fleet.
Werner also noted that it’s still to early to gauge the effect of hours of service rules changes that took effect the first of July, but it said it expects “government restrictions of available driving hours will negatively impact the productivity of some drivers and some fleets within our company.”
More details are available on the Werner website.
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