Two trucking companies on Monday announced huge increases in their earnings for the final quarter of 2017 and for all of last year, both due to changes made by Congress in federal tax laws.
Werner Enterprises Inc. reported net income for the fourth quarter increased 547% from the same time in 2016, totaling $141.1 million, or $1.94 per share, while total revenues moved up 9% to $567.4 million.
For all of 2017, net income improved 156% from 2016 to $202.9 million, or $2.80 per share, while revenue moved 5% higher to nearly $2.12 billion.
According to the company, both the quarterly and annual results included a $110.5 million, non-cash reduction in income tax expense, which resulted from its revalued net deferred income tax liabilities to reflect the lower federal income tax rate enacted in the last of 2017. It lowered Werner's federal corporate income tax rate to 21% from 35% beginning in 2018.
Excluding the non-cash income tax reform benefit, Werner's performance from period to period, earnings per diluted share were 42 cents and $1.27 for fourth quarter 2017 and full year 2017, respectively.
Werner also said fourth quarter 2017 freight demand in truckload fleet was strong.
“Freight in October 2017 was seasonally better than normal, and demand strengthened further in November and December,” the company said. “Freight volumes thus far in January 2018 have been much stronger than normal for January.”
Average revenues per tractor per week increased 4.1% in fourth quarter 2017 compared to fourth quarter 2016 due to a 4.7% increase in average revenues per total mile and a 0.6% decrease in average miles per truck, according to Werner. Growth in shorter-haul dedicated compared to longer-haul one-way truckload had a favorable impact on revenue per total mile and an unfavorable impact on miles per truck.
Werner noted that freight metrics are improving and the company
