Marten Revenue Nears $280 Million Amid Tough Q3 Market
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Marten Transport experienced a decline in revenue and earnings amid tough market conditions during the third quarter, the company reported Oct 18.
The Mondovi, Wis.-based supplier of time- and temperature-sensitive transportation services posted net income of $13.6 million, or 17 cents per diluted share, for the three months ending Sept. 30. That compared with $25.6 million, or 32 cents, during the same time the previous year. The total operating revenue decreased by 13.8% to $279.5 million from $324.4 million.
“Our earnings this quarter were significantly pressured by the industrywide weak demand, cumulative impact of reduced freight rates with the resulting freight network disruption, and inflationary operating costs within the current freight market recession,” Marten Executive Chairman Randolph Marten said in a statement.
Operating income was $17.2 million for the third quarter compared with $33.8 million for the third quarter of 2022. Operating expenses as a percentage of operating revenue were 93.8% for the quarter and 89.6% for the same time last year.
“The record heat and rising fuel prices each month of the third quarter led to an increase in our mile-adjusted net fuel expense of $3.9 million, or 4 cents per diluted share, from this year’s second quarter to third quarter,” Marten said. “We are focused on both minimizing the current freight market’s impact on our operations and investing in and positioning our premium service solutions to capitalize on profitable organic growth opportunities as the market necessarily recovers — with fair compensation for our services. To that end, we have not agreed to any rate reductions since early August.”
The truckload segment reported that revenue decreased 11.7% to $114.2 million from $129.4 million during the prior-year quarter. Operating income for the segment fell 80.9% to $2.74 million from $14.3 million. Every other segment also reported a decline in revenue.
- The dedicated segment saw revenue decrease by 7.6% to $101.8 million from $110.2 million. Operating income for the segment declined 13.2% to $11.3 million from $13 million.
- The intermodal segment saw revenue decrease by 30.9% to $22 million from $31.9 million. Operating income fell by 238% to a loss of $1.07 million from a gain of $778,000 last year.
- The brokerage segment reported that revenue decreased by 21.7% to $41.5 million from $53 million. Operating income for the segment declined 24.4% to $4.28 million from $5.66 million.
Marten Transport ranks No. 42 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 87 on the TT 100 list of the largest logistics companies.
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