Werner Enterprises reported its net income in the second quarter of 2013 was $25.8 million, dropping 16 percent from $30.7 million in the second quarter of 2012.
Quarterly revenue for Werner Enterprises, No. 10 on JOC’s 2012 list of the Top 50 Trucking Companies, slid 3 percent from $521.8 million in 2012 to $506.6 million in 2013. Second quarter trucking revenue, net of fuel surcharge, dropped 4 percent year-over-year to $320.0 million, while revenue from value-added services was $91.2 million, up 7 percent from $85.1 million.
Freight demand in the second quarter was softer in April 2013 than in April 2012, partially because of unfavorable temperature and weather comparisons that negatively affected retail volume, the truckload carrier said in a written statement. However, freight demand improved and seasonally strengthened during May and June 2013 and was comparable to the same months in the previous year.
In the first six months of 2013, net income was $43.4 million, plummeting 17 percent from $51.9 million in the same period in the previous year. Total revenue in the first half of the year was $999.5 million, declining 2 percent year-over-year from $1.02 billion, and trucking revenue, net of fuel surcharge, was $633.4 million, dropping 3 percent. Revenue from value-added services was $173.7 million, up 7 percent.
The company said ongoing truckload capacity constraints included an older industry truck fleet; the higher cost of new trucks and trailers; “significant” safety regulatory challenges; and a challenging driver market, including the hours of service changes. It noted that it is jointly working with customers to secure sustainable transportation solutions and offset increased rates through enhanced optimization and transportation solutions whenever possible.
“We were able to hire more drivers during second quarter 2013 compared to second quarter 2012, but the difficult driver market is making it challenging to achieve our 7,300 truck goal for the truckload segment,” the company added.