Earnings Watch: Werner Rises 27%
Trucking and logistics provider Werner Enterprises has reported that its earnings climbed 27% for the second quarter, compared to the same period a year ago.
Werner said it ended Q2 with earnings per diluted share of $0.32 compared to earnings per diluted share of $0.25 for Q2 2016. The company noted that Q2 ’16 results included a $3.4 million pre-tax gain, or three cents per diluted share, on the sale of real estate.
“Second quarter 2017 freight demand in our One-Way Truckload fleet improved seasonally throughout the quarter,” Werner said in a statement. “The seasonal improvement was better than normal in some periods of second quarter 2017, compared to seasonally softer than normal freight demand in second quarter 2016. Freight volumes thus far in July 2017 in One-Way Truckload have been seasonally better than normal and stronger than the same period in July 2016.”
Werner reported average revenues per tractor per week increased 4.1% in this year’s Q2 compared to the same period a year earlier due to a 2.4% increase in average revenues per total mile and a 1.7% increase in average miles per truck.
“During second and third quarter of 2016, to take advantage of a strengthening Dedicated market, we moved trucks from One-Way Truckload, lessening the need to find freight for trucks in the more challenged one-way truckload market,” the company pointed out “The shifting of trucks to shorter-haul Dedicated from longer-haul One-Way Truckload had a favorable impact on revenue per total mile and an unfavorable impact on miles per truck.”
The company also advised that freight volume metrics have improved, evidenced by a lower empty mile percentage, rising average miles per truck, and higher pricing for transactional spot market shipments. “Assuming this freight volume trend continues, we expect contractual rates to begin to improve over the next few quarters, particularly noting …Read the rest of this story
