The Warren, Mich.-based trucking carrier and third-party logistics provider saw net income plummet 39.2 percent year-over-year to $24.2 million as revenues slid 5 percent to $1.07 billion, according to the company’s most recent financial statements.
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Universal Logistics Holdings’ profits plunged 39.2 percent to $24.2 million in 2016 due to a “difficult environment.”
Universal Logistics Holdings, Inc. saw its full-year 2016 profits plunge 39.2 percent to $24.2 million compared with the previous year, according to the company’s most recent financial statements.
The Warren, Mich.-based trucking carrier and third-party logistics provider posted diluted earnings per share (EPS) of $0.85 compared with $1.37 per share in 2015, as revenues slid 5 percent year-over-year to $1.07 billion.
Net income in the fourth quarter stood at $2.7 million ($0.10 per share) on total operating revenues of $264.1 million, decreases of 70.7 percent and and 7.7 percent, respectively, compared with the same 2015 period.
Jeff Rogers, Universal’s chief executive officer, cited the “difficult” freight transportation market in 2016 as the primary reason for the disappointing results.
“Our model is strong,” said Rogers. “We endured a difficult environment all year, and the fourth quarter was no exception. Our unique position servicing heavy industrial customers subjects us to volatility when those end-markets are depressed; however, it also provides us great upside potential when those markets recover.
“Universal’s 2016 results did not meet our expectations, but our strategy remains the same: Simplify, Focus and Execute. We have undergone quite a transformation over the past few years; streamlining and rebranding our operating subsidiaries, staying focused on margins and controlling costs. Now, it is time to execute,” he added.
In addition, Universal Logistics’ board of directors declared a fourth quarter cash dividend of $0.07 per share of common stock payable to shareholders of record at the close of business on March 6, 2017, in line with previous quarterly dividends.