Swift’s profits, revenues drive downward in 2016

The trucking and intermodal carrier said volumes and pricing during the year were pressured by excess industry capacity, excess customer inventories, a weakening used truck market and sluggish demand.    Swift Transportation reported a net income of $149.3 million and operating revenues of $4.03 billion for 2016, year-over-year declines of 24.5 percent and 4.7 percent, respectively, as excess industry capacity, excess customer inventories, a weakening used truck market and sluggish demand pressured volumes and pricing throughout the year, according to the trucking and intermodal carrier.
   Diluted earnings per share for 2016 totaled $1.10 per share, down from $1.38 for 2015.
   For the fourth quarter alone, net income tumbled 30.4 percent from a year prior to 50.4 million, while operating revenues fell 4.7 percent to $1.04 billion.
   “We feel 2017 has the potential to be a very exciting year for large, well-capitalized, strategically positioned, compliant carriers,” Swift said. “As the deadline for ELD implementation draws closer, we expect the market to have meaningful capacity contraction which we believe will have a positive impact on truckload pricing.  Furthermore, we believe our operational improvements and cost-control initiatives implemented throughout 2016 will further strengthen our position within the market.”