The trucking and logistics company posted $32.1 million in net income on revenues of $534.4 million in the third quarter of 2015.
Werner Enterprises, Inc., a publicly traded trucking and logistics provider posted a net income of $32.1 million for the third quarter of 2015, an increase of 24 percent from the same period in 2014.
Revenues for the quarter dropped 3 percent year-over-year to $534.4 million.
During the third quarter, the company accrued a $3.9 million expense related to a class action suit that involved an employment-related claim and a separation agreement for an executive resignation previously disclosed in third quarter 2015, the company said.
Freight demand during the third quarter and into October has been similar to historical standards, however demand has not been as strong as the same periods in 2014. Freight demand trends have been impacted by a gradually improving economy in various different markets and constrained truck capacity.
Truckload industry capacity is being challenged by the competitive driver recruiting market and heightened regulatory cost increases for safety and truck ownership. Werner expects this trend to continue. “There are numerous pending and proposed federal safety initiatives that could further limit truckload and driver capacity in the next few years, including mandatory electronic logging devices (ELD’s), a national drug and alcohol driver database, increased minimum liability insurance requirements for carriers, more sophisticated drug screening procedures for drivers and mandatory truck speed limiter devices,” Werner said. “It is expected that the final rule for ELD’s will be issued in fourth quarter 2015.”
Diesel fuel prices were $1.25 lower in the third quarter of 2015 compared to last year’s third quarter, which resulted in the reduction in fuel surcharge revenues by $36 million in the Truckload segment and $7 million in the VAS segment.
Werner continues to make progress to implement sustainable rate increases as the company works the recoup the cost increases associated with more expensive equipment, a dwindling supply of qualified drivers and an increasingly challenging regulatory environment.
“Our financial position remains strong,” Werner said. “As of September 30, 2015, we had $75.0 million of debt outstanding and $903.2 million of stockholders’ equity.”
Werner sees 24% increase in Q3 net income
