Schneider Reports Profit Rises, Revenue Dips
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Schneider National saw net income increase while revenue fell during the second quarter, the truckload, intermodal and logistics services company reported July 30.
Green Bay, Wis.-based Schneider posted net income of $46.5 million, or 26 cents a diluted share, for the three months ending June 30. That compared with $34.5 million, or 34 cents a share, during the same time the previous year. The figures are adjusted for nonrecurring items.
Revenue decreased 15% to $1 billion from $1.2 billion the year prior.
Wall Street analysts had been looking for 19 cents per share and quarterly revenue of $1.04 billion, according to Zacks Consensus Estimate.
“As it related to the quarter, it was a demanding one,” CEO Mark Rourke said during a conference call with investors. “I am especially grateful and proud of the resiliency our associates demonstrated daily, especially our professional drivers. In these highly uncertain and fluid times, our team’s business priorities is to first safeguard the health and safety of our associates. Secondly to adapt to the dynamic freight demand needs of our valued customer community.”
Rourke noted the economic recovery of freight markets have been uneven across service lines. The intermodal segment has been impacted the most due to a mix of essential and nonessential shippers and a reduced level of source import activity from Asia.
“The impacts of COVID-19 in our daily work lives are pronounced,” Rourke said. “Since the onset of the pandemic, we have had over a hundred associates who have experienced a confirmed COVID diagnosis. Fortunately, all of them have recovered or are in the process of recovery from the effects.”
Rourke added there still is a high degree of uncertainty. But retail, food, beverage and consumer nondurable customers are projecting increased volumes through the second half of the year.
Rourke
“We are having constructive planning conversations with our customers across our intermodal and truckload segments,” Rourke said. “We’re seeing a near-term tightening of supply and demand in most geographies across our network.”
Truckload segment revenue decreased 16% to $451.1 million during the quarter from $534.9 million during the same time last year. This was primarily due to the shutdown of the first- to final-mile service and lower volume and price. Truckload volume increased as the quarter progressed and ended June near prior-year levels.
Operating income for the truckload segment increased 80.5% during the quarter to $40.5 million from $7.9 million the prior year. The report noted improved variable cost management in driver recruiting, maintenance and fuel partially for the segment offset the impact of lower volume and price.
The intermodal segment reported that revenue decreased 16% to $219 million during the quarter from $259.8 million the prior year. The report noted the decline was partially a result of network demand disruptions due to weak Asia import volumes combined with the prolonged shutdown of nonessential retail customers and lower revenue per order.
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Income in the intermodal segment decreased 64% during the quarter to $11 million from $30.5 million last year. This was primarily due to decreased revenues and higher rail costs.
The logistics segment reported that revenue increased 2% during the quarter to $230.9 million from $227 million during the same time last year. This was primarily due to increased volume. Income for the segment decreased 11% during the quarter to $8.2 million from $9.2 million the prior year. This was primarily due to lower net revenue per order.
Schneider National was founded as a family business in 1935. The company has since expanded to include services including regional and longhaul truckload, expedited, dedicated, bulk, intermodal, brokerage, warehousing, supply chain management and port logistics.
Schneider ranks No. 5 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and No. 18 on the Transport Topics Top 50 list of the largest logistics companies.
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