Werner’s net income tumbles 43% in Q2

The transportation and logistics company’s net income for the second quarter of 2016 fell 43 percent year-over-year to $18.3 million, resulting from sluggish freight market conditions, the pay increase for drivers and independent contractors, and a soft u    Werner Enterprises experienced a 43 percent year-over-year decline in net income for the second quarter of 2016 to $18.3 million, according to the company’s most recent unaudited financial statements.
   The Omaha, Neb.-based transportation and logistics provider’s diluted earnings per share (EPS) fell from $0.44 per diluted share from last year’s second quarter to $0.25 per diluted share for the second quarter of 2016.
   Werner attributed the quarter’s sluggish results to weak freight market conditions, the pay increase for drivers and independent contractors, and a soft used truck market.
   Total revenues for the quarter were also down, having slipped 7 percent year-over-year to $498.7 million.
   In addition, freight demand during the second quarter of 2016 was also softer than freight market demand in the second quarters of the prior two years, especially in April 2016.
   Werner’s overall operating ratio, net of fuel surcharges, increased 460 basis points to 93.5 percent. Stifel said the primary driver of the unfavorable increase in the operating ratio could be attributed mostly to a 660 basis point year-over-year increase in the truckload transportation segment.
   Stifel said it reiterating its 2016 and 2017 EPS estimates at $1.17 and $1.30, respectively, and set its 2018 estimate at $1.50.
   “Our financial position remains strong,” Werner said. “As of June 30, 2016, we had $145.0 million of debt outstanding and $963.1 million of stockholders’ equity.”