TransForce buys Cavalier
Earnings Watch: Werner Enterprises Quarterly Profit Falls 40%
Earnings for the trucking and logistics company Werner Enterprises Inc. took a bit of a dive in not just the final quarter of last year but for all of 2016 as it said it continued to make a significant investment in its business.
Net income in the fourth quarter declined 40% from a year ago to $21.8 million with earnings per share of 30 cents compared to 51 cents. Total revenue fell 2% to $518.8 million while revenue minus fuel surcharges declined 6% to $347.5 million.
“Our fourth quarter 2016 freight demand demonstrated seasonal improvement from third quarter 2016,” Werner said in a statement. “We believe part of this improvement was industry specific and part was company specific.”
For all of 2016, Werner's net income fell 36% from 2015, totaling $79.1 million as earnings per share came in at $1.09 versus $1.71 a year earlier. Total revenue and revenue minus fuel surcharges each fell 4% to $2 billion and $1.4 billion, respectively.
According to the company, 2016 was a very challenging freight and rate year for its truckload and logistics business segments.
“Our significant investment in the five T's at Werner, trucks, trailers, terminals, talent and technology, is raising the bar for service and we expect will result in improved financial results going forward,” the company said.
Werner said it is nearing completion of a significant reinvestment in its fleet over the last two years to reduce the average age of its trucks and trailers, which stood at 1.8 years at the end of 2016.
Net capital expenditures in 2016 were $429.6 million compared to $351.5 million in 2015. It estimates net capital expenditures for 2017 to be in the range of $225 million to $275 million.
In fourth quarter 2016, Werner said it averaged 7,178 trucks in service in its truckload segment and 80 intermodal drayage trucks ...Read the rest of this story
Diesel Down Slightly for Third Straight Week
<img width="150" src="http://www.automotive-fleet.com/fc_images/news/m-diesel-prices-27.jpg" border="0" alt="
Source: EIA
" >Source: EIA
" width="250" height="340">Diesel prices in the U.S. were down by less than a cent, marking the third straight week of decreases since the start of the year, according to the latest numbers from the Energy Department.
The average price for a gallon of on-highway diesel fuel fell by 0.7 cents last week, settling to $2.562 per gallon at the pump. The price is now more than 53 cents more expensive than it was in the same week of 2016.
Changes in the price of diesel fuel varied by region with the largest decrease occurring in the Rocky Mountain region, which saw a 1.6-cent drop. Prices were actually up slightly in the Lower Atlantic region with a 0.3-cent increase for the week.
Gasoline prices were also down last week, dropping another 3 cents and settling to $2.296 per gallon. The average price of regular gasoline is now 47.4 cents higher compared to the same week a year ago.
The largest drop in gas prices was in the Midwest, where prices decreased by 5.1 cents for the week. On the West Coast, prices were up slightly, jumping 0.2 cents.
Crude oil prices were down again on Jan. 30 as the rampup in U.S. oil production continues to offset production freezes in the Middle East.
In addition to increased domestic oil production, a stronger U.S. dollar and indications that countries like Russia might not meet their full production-reduction target also added to the subdued oil market, according to a CNBC report.
Related: Shell, Automakers Invest $10.7B in Hydrogen
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USA Truck Appoints James D. Reed as President and Chief Executive Officer
Werner Enterprises Reports Fourth Quarter and Annual 2016 Revenues and Earnings
Dayton Parts Adds U-Bolt Bend Product for Leaf Suspension Repairs
Dayton Parts has announced the Threaded Rod Midline System, which is designed to ensure the midpoint of a threaded rod to create a consistent U-bolt formation for replacement.
The Threaded Rod Midline System works for automotive, truck and trailer leaf spring suspension U-bolt applications.
“When a leaf spring suspension is repaired, the U-bolt required for clamping purposes is often custom-formed onsite at the repair facility,” said Walt Sherbourne, vice president of marketing, Dayton Parts. “The Midline System allows a distributor or repair facility to quickly and easily identify the midline of the threaded rod to create a precise U-bolt bend for that specific replacement.”
With the Midline System, it is applied during the manufacturing process to create clear, visible markings, indicating the midpoint of a threaded rod. The threaded rods are available in various two-inch incremental lengths and include a rust prohibitive coating that meets original equipment manufacturer spray test requirements that can last longer than current aftermarket coatings. The rods also feature chamfered ends to ensure an easier transitional start for the nut.
“Our Midline System can be used to create any style of U-bolt required for the application,” said Sherbourne. “Round, semi-round or square bends can be accurately formed within a matter of minutes minimizing mistakes.”
The new Midline System threaded rods will be stocked at the company's Lewisville, Texas and Harrisburg, Penn., facilities, as well as at Dayton's Canadian facilities Edmonton, Alberta, and Mississauga, Ontario.
Dayton is a manufacturer and supplier of leaf springs for light-, medium-, and heavy-duty trucks and offers a broad portfolio of products for undercarriage applications.
For more information, click here.
Related: HDMA Forms Commercial Vehicle Research Council
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