Roadrunner Net Income Plunges 77%
Roadrunner Transportation Systems Inc.’s first-quarter net income plunged 77% to $3.1 million, or 8 cents per share, as profits were undercut by the weak freight market.
In last year’s first quarter, Roadrunner, based in Cudahy, Wisconsin, earned $13.6 million, or 35 cents on revenue of $489 million. In the period ended March 31, revenue slipped 4.8% to $465.6 million.
“Our largest decline in operating income came from the truckload logistics segment,” CEO Mark DiBlasi said in a statement, citing “historically low pricing” and excess capacity.
Truckload, with $273.8 million in revenue, reported operating income, which excludes taxes and interest, of $5.9 million, a decline of more than 60%. The reduced profit included $2.3 million in downsizing costs. Revenue rose less than 1% due to increased brokerage activity.
In the less-than-truckload unit, operating income plummeted to $1.2 million from $8.7 million, hurt by weak industrial freight demand, including $700,000 in downsizing expense. Tonnage fell 14% and shipments dipped 8%, leading to a 14% drop in revenue to $113.4 million.
Roadrunner, which is No. 17 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, said that profits improved in its gobal solutions unit that serves international markets, rising to $7.7 million from $6.3 million. Revenue in that unit dipped 11% to $82.9 million.
The company said it plans to continue downsizing efforts in the second quarter.
