The transportation and logistics provider’s net income dropped 41 percent to $18.9 million compared with third quarter 2015 after a similar 43 percent year-over-year decline the previous quarter, according to the company’s most recent financial statements.
Werner Enterprises, Inc. saw its earnings continue to tumble in third quarter 2016 as net income dropped 41 percent to $18.9 million compared with the same 2015 period, according to the company’s most recent financial statements.
The earnings decline followed a similar 43 percent year-over-year contraction the previous quarter.
The Omaha, Neb.-based transportation and logistics provider reported diluted earnings per share (EPS) of $0.26 per share in Q3 2016 compared to $0.44 per share in Q3 2015 and $0.25 per share in Q2 2016.
Revenues for the quarter slipped 4.8 percent year-over-year to $508.7 million. The company’s trucking division saw revenues fall 6.5 percent to $336.7 million compared with third quarter 2015, while revenues at the non-asset based Werner Logistics segment, formerly called Value Added Services, grew 7.2 percent to $109.5 million.
For the first nine months of 2016, Werner reported net income of $57.3 million on $1.49 billion in revenues, year-over-year decreases of 34.2 percent and 4.8 percent, respectively.
Werner attributed the decline primarily to weak – albeit improving – freight demand, excess capacity in the trucking market, challenges in driver recruiting and retention, and fluctuations in fuel prices and fuel surcharge revenues.
“Third quarter 2016 freight demand showed gradual improvement from the weak second quarter freight market,” the company said. “We believe part of this improvement was industry specific and part was company specific.”
The company in June transferred 150 trucks from its one-way truckload division into dedicated truckload service, followed by another 100 trucks in September, in order to “take advantage of the strengthening dedicated market” and cut out excess capacity in the “more challenged One-Way market.”
“Freight volumes and transactional spot market pricing in the One-Way Truckload market improved in third quarter 2016 from the lower levels in second quarter 2016,” said Werner. “We reduced our spot market exposure from elevated levels in second quarter 2016 to more typical levels in third quarter 2016.
“We experienced better than normal freight volume trends in our One-Way Truckload business in July followed by stable and steady freight trends in August and September,” it added. “Freight demand thus far in October 2016 has been consistent with normal seasonal trends.
“Our financial position remains strong,” said Werner. “As of September 30, 2016, we had $150.0 million of debt outstanding and $978.5 million of stockholders’ equity.”
Werner earnings decline continues in Q3
