Non-asset based freight brokerage and transportation management service provider Echo Global Logistics set a fourth quarter record for total revenues as it continued to expand its market share.
Echo Global Logistics, a non-asset based freight brokerage and transportation management service provider, on Friday reported a 39 percent increase in net revenues to $290 million last year as truckload volumes increased 95 percent over 2014.
The Chicago-based company said operating profits grew 37 percent to $68 million and would have been $2.3 million higher if not for integration costs associated with the acquisition last year of Command Transportation.
“While the freight environment has been relatively soft, I am very pleased with our ability to continue to grow market share and expand net revenue margins, while focusing on servicing our shipper and carrier partners to drive value and enhance the Echo brand in the marketplace,” Chairman and CEO Doug Waggoner said of the results.
During the fourth quarter, Echo grew both net revenues and pre-tax earnings by 48 percent to $80 million and $18.6 million, respectively. Total revenues grew 36 percent to a record $407 million.
Looking ahead to 2016, projects $1.8 billion to $1.88 billion in total revenues compared to $1.51 billion last year. “This range reflects revenue growth in the range of 19 percent to 24 percent over 2015, which implies significant volume growth in light of the decrease in fuel prices,” Chief Financial Officer Kyle Sauers said.
The plunge in diesel fuel prices has eliminated the ability of motor carriers to charge fuel surcharges, which tended to have extra profit built into the mechanism.
Total revenues in logistics reflects how much customers paid a vendor before transportation costs to place the loads with motor carriers are included.
Echo posts strong earnings in sluggish truck market
