Truckload, intermodal and logistics provider Schneider National reported a net income of $36.9 million for the third quarter of 2017, up 0.2 percent compared to the same period in 2016, according to the company’s latest financial statements.
Wisconsin-based truckload, intermodal and logistics services provider Schneider National, Inc. posted a net profit of $36.9 million for the third quarter of 2017, or $0.21 per share on a weighted average diluted per share basis, up 0.2 percent from the same period in 2016, according to the company’s most recent fincancial statements.
The company recorded revenues of $1.1 billion, up 5 percent from the same quarter in 2016, due to improved demand versus capacity balances, Schneider said. In addition, increased revenue was generated from demand in Intermodal and Logistics, productivity in Truckload, the Company’s leasing business, and fuel surcharge revenue.Truckload revenue (excluding fuel surcharge) increased 2 percent compared to the third quarter of 2016 due to improved truck productivity and effective freight selection, while intermodal revenue (excluding fuel surcharge) increased 4 percent due to an increase in orders that resulted from the competitive pricing market and growth in the East, which has a shorter length of haul.
“In the third quarter, we saw improved demand/supply balance and increased economic activity, resulting in accelerating pricing,” noted Chris Lofgren, CEO of Schneider. “This was offset by cost pressures from driver recruiting and pay, continued refining of our cost structure in the First to Final Mile service offering, as well as lost revenue and productivity from the hurricanes. Our portfolio of services displayed resiliency in the quarter as evidenced by our Intermodal and Logistics segments. Our investments to grow Truckload driver capacity in the third quarter positioned us well for the opportunities we expect to emerge in the fourth quarter of 2017 and into 2018.”
Looking ahead, the company expects “market strengthening to continue for the foreseeable future, especially given the significant amount of building materials that will need to be moved into Texas, Florida and the Southeastern part of the U.S., as well as the enforcement of the ELD mandate. The availability of new jobs in the construction industry in the South, will put additional pressure on driver hiring and retention. That said, we are encouraged by our success in hiring drivers in the third quarter. The interplay of continually improving price, partially offset by costs due to driver availability, will determine market dynamics in 2018,” said Lofgren.
“Also, building out our First to Final Mile service offering will require additional investment. Therefore, to account for third quarter performance and these near-term effects, we are revising our full year 2017 adjusted diluted earnings per share range to $0.92 to $0.97. We continue to anticipate capital expenditures for 2017 to be in the range of $350 million to $400 million, which includes $100 million for chassis,” Lofgren concluded.
Schneider profits flat in Q3 2017
