Knight-Swift 2Q Earnings, Revenue Decline
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Knight-Swift Transportation Holdings, North America’s largest truckload transportation company, reported second-quarter declines in net income and revenue amid 2019’s softer freight environment.
Net income for the period ended June 30 fell 13.3% to $79.2 million, or 46 cents per diluted share, compared with $91.3 million, or 51 cents, in the 2018 period.
Revenue decreased by 6.7% to $1.2 billion compared with $1.3 billion a year earlier.
The operating ratio at its trucking segment improved to 87.7% compared with 88.3% a year earlier. At the same time, the segment’s revenue — excluding trucking fuel surcharge and inter-segment transactions — fell $41 million to $900 million.
At its logistics segment, revenue, excluding inter-segment transactions, fell 16.7% to $80.3 million compared with $96.4 million in the second quarter of 2018. “This was primarily driven by a 10.3% decrease in brokerage revenue per load. Competition increased as the quarter progressed, putting more pressure on revenue and margins,” according to the company release.
Intermodal revenue, excluding inter-segment transactions, slipped to $117 million compared with $119 million a year earlier.
“We expect that net capital expenditures will be in the range of $550 million to $575 million for full-year 2019, primarily representing replacements of existing tractors and trailers, as well as investment in our terminal network and driver amenities. We plan to continue funding purchases primarily with cash and borrowing under our revolving credit facility, and we expect to rely less on leasing,” the company stated.
For the six-month period, net income increased to $167.1 million, or 97 cents, compared with $161.6 million, or 90 cents in the 2018 period.
Revenue dipped to $2.2 billion compared with $2.3 billion a year earlier. — Transport Topics
