Werner Enterprises reported its net income in the third quarter of 2013 was $21.3 million, sliding 15 percent year-over-year from $25.1 million.
Conversely, quarterly revenue for the motor carrier, No. 10 on JOC’s list of the Top 50 Trucking Companies, rose 1 percent to $511.7 million, from $506.5 million in the third quarter of 2012. Revenue from value-added services jumped 16 percent to $96.5 million, while trucking revenue, net of fuel surcharge, fell 1 percent to $321.7 million.
Earnings per diluted share for the third quarter of 2013 were within the expected range of 27 cents to 30 cents, a downgrade from an earlier projection of 36 cents, which was announced by the company in mid-September. That lowered guidance was part of a larger trend, as other U.S. domestic transportation companies — Hub Group, Knight Transportation and Swift Transportation — also cut their forecasts.
- Werner Enterprises Downgrades 3Q Expectations
- Knight Transportation Lowers 3Q Expectations
- Hub Group Cuts Guidance for Third Quarter
Quarterly freight demand, as measured by the daily morning ratio of loads to trucks in Werner Enterprises’ one-way truckload network, showed normal seasonal improvement in August and September. This was better than the softer freight demand during the same period a year ago, when freight demand was essentially flat throughout the entire quarter, the motor carrier said. The company said it believes that better freight conditions in the third quarter of 2013 resulted from slightly tighter capacity because of the hours of service changes implemented on July 1, as well as slightly improved customer demand.
However, Werner Enterprises noted that federal hours of service changes had a negative impact on miles per truck of 2 to 3 percent, partially driving a 3.5 percent year-over-year decline in average monthly miles per truck in the third quarter. Other factors included truck mix changes and a 7 percent shorter length of haul in the quarter compared with the previous year. The company said it is working with customers and drivers to minimize the impact of the hours of service changes or to obtain adequate rate relief.
In the first nine months of 2013, profit was $64.6 million, plummeting 16 percent from $77.0 million in the same period in the previous year. Revenue from January to September was $1.51 billion, slipping 1 percent from $1.53 billion. Trucking revenue, net of fuel surcharge, was $955.1 million, down 2 percent, while revenue from value-added services was $270.2 million, up 10 percent.