Werner Q1 2017 profits fall despite increased revenues

The truckload transportation and logistics provider’s net income for the quarter tumbled 20.3 percent to $16 million compared with the same 2016 period even as revenues grew 3.8 percent to just over $501.2 million.    Werner Enterprises Inc. saw its first quarter 2017 profits tumble 20.3 percent to $16 million compared to the same 2016 period, 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 $0.28 in the first quarter of 2016 to $0.22 per diluted share in 2017, even as revenues grew 3.8 percent year-over-year to just over $501.2 million.
   Werner attributed the sluggish results to seasonal softness in freight demand for one-way truckload services, a “challenging” driver recruiting market and higher prices for diesel fuel.
   “Freight demand in our One-Way Truckload fleet was seasonally softer in January with weaker trends from late January 2017 to late February 2017,” the company said. “In March 2017, our freight volume trend was more encouraging, as freight improved to more normal seasonal levels consistent with the same period in 2016.
   “Freight volumes thus far in April 2017 in One-Way Truckload have been better than the same period in April 2016,” it added.
   Operating income in Werner’s truckload (TL) transportation services segment plunged 27.5 percent from the prior-year period to $23.5 million despite TL revenues rising 3.2 percent year-over-year to $385 million. The company’s logistics division likewise saw operating income slip 39.4 percent to $3 million as logistics revenues rose 3.4 percent to $96.6 million.
   The company achieved an operating ratio of 93 percent in the TL segment, a 2.5 percentage point increase from the previous year, and 96.9 percent in the logistics segment, a 2.1 percentage point bump from Q1 2016.
   “Our financial position remains strong,” Werner said. “As of March 31, 2017, we had $130 million of debt outstanding and over $1 billion of stockholders’ equity.”