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

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Texas Utility Starts Drone Pilot Program

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New Braunfels Utilities (Texas) will use an unmanned aerial system, or drone, to inspect about 500 power poles along five miles of distribution lines, reports San Antonio Express-News. Historically, this job was done by workers in elevated bucket trucks.

The pilot program will cost $35,000 and is expected to take about a week to complete. The drone is equipped with regular and infrared camera. Video from the drone will be analyzed to identify loose connections, leaking oil, rust and deterioration, and any hot spots.

CPS Energy in San Antonio completed a similar pilot, where it inspected 50 towers in 2.5 days, a job that would have taken two to three weeks using bucket trucks.

Related: Drones in Truck Fleets: Beyond Package Delivery

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Kenworth: Vocational Truck Market to Stay Strong Through End of 2017

Photo:Jim Park.

The first half of 2017 has been good to the trucking industry, and to the vocational market in particular, and the going into the second half of the year, the underlying economic fundamentals look equally promising. That's the view from Renton, Wash., where Paccar vice president and Kenworth general manager Mike Dozier addressed reporters at a press event on July 21.

"Whether you're talking vocational or just the market in general in North America, the underlying fundamentals all remain very positive," Dozier said. "There's a very strong alignment between what we're seeing in terms of sentiment within the industry and factors like growth in GDP and the associated rise in consumer confidence. We expect that to continue throughout the year."

Dozier noted that certain key indicators, namely total construction spending and housing starts, trend closely to actual growth in retail orders for the company's T880 vocational chassis.

Earlier this year, Kenworth had forecast retail sales of 190,000 to 220,000 units. At the time, Dozier among others was a bit worried that the situation might change as the post-election hangover wore off, but it hasn't. In fact, Dozier said consumer confidence remains strong-- and the market remains buoyant.

"Earlier in the year, I would have said we were in the lower range of the estimate band," he said. "But today, with half the year still ahead of us, we are in the upper range of that band. That bodes well for the remainder of the year."

Internally, Dozier said the Paccar MX engine now accounts for just over 45% of engine orders across all Class 8 lines — on-highway and vocational. "We are happy with the growth we've seen so far, and we expect to end 2017 with 160,000 MX engines in service," he said.

The Kenworth dealer network continues to grow. There were 382 ...Read the rest of this story