Schneider Reports 16% Revenue Increase to $1.68B for Q3
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Schneider reported quarterly growth amid normalizing market conditions during the third quarter, the company reported Oct. 27.
The Green Bay, Wis.-based truckload motor carrier posted net income of $125.8 million, or 70 cents a diluted share, for the three months ending Sept. 30. That compared with $110 million, 62 cents, during the same time the previous year. Total operating revenue increased by 16% to $1.68 billion from $1.44 billion.
The revenue when excluding fuel surcharges increased 8% to $1.44 billion from $1.33 billion.
“In the third quarter, shifting freight fundamentals resulted in a more balanced supply and demand condition,” Schneider CEO Mark Rourke said. “The enterprise grew revenues 8% over the prior year, representing the highest third quarter in our history.”
Rourke
The results were mixed in terms of Wall Street expectations; analysts had been looking for 67 cents per share and quarterly revenue of $1.73 billion, according to Zacks Consensus Estimate.
“Coming into the quarter, we actively positioned our portfolio for the changing market conditions and continue to see supportive contractual volumes and pricing across our enterprise,” Rourke said. “We look forward to closing out the year well-positioned for 2023 and our strategic pursuit of higher returns on capital and earnings resiliency through continued growth in our dedicated, intermodal and logistics operations.”
Truckload segment revenue for Q3 increased 18% to $571.2 million from $484.4 million during the same time last year. This was due to Midwest Logistics Systems’ revenue, effective yield management and dedicated new business growth that was partially offset by lower network miles. Truckload revenue per truck per week increased 3% to $4,178. Income from operations decreased 2% to $83.2 million from $85.1 million. Lower gains on the sale of equipment and higher driver-related costs were partially offset by dedicated growth and improved yield.
Intermodal segment revenue increased 13% to $334.7 million from $295.7 million. This was primarily driven by revenue per order and volume growth. Volume growth was constrained during the quarter due to Western rail service, elevated container dwell time at customer locations, delayed chassis deliveries and the impact of rail labor negotiations. Intermodal income from operations decreased 32% to $31.1 million from $45.7 million. This was due to increased rail and dray related costs, in addition to temporary expenses related to the pending Union Pacific transition.
Logistics segment revenue decreased 2% to $464.2 million from $474.6 million. The year-over-year decline was driven by decreased revenue per order and impacted by lower spot price. This was partially offset by 5% brokerage volume growth. Income from operations increased 26% to $27.9 million from $22.1 million. This was due to volume growth in brokerage and increased net revenue per order.
Schneider ranks No. 8 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and No. 19 on the TT Top 100 list of the largest logistics companies.
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