Werner Posts Revenue, Earnings Decline for Q1
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Werner Enterprises experienced a decline in revenue and earnings during the first quarter of 2024, the company reported April 30.
The Omaha, Neb.-based freight carrier and logistics company posted net income attributable to itself of $6.31 million, or 10 cents a diluted share, for the three months ending March 31. That compared with $35.2 million, 55 cents, during the 2023 period. Total revenue decreased 8% to $769.1 million from $832.7 million.
“Freight conditions remained challenging in the first quarter with persistent excess industry capacity driving broad pricing pressure combined with adverse weather and one-off expense headwinds,” CEO Derek Leathers said. “Despite these market challenges, we focused on controlling the controllables.”
Werner ranks No. 17 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 30 on the TT Top 100 list of the largest logistics companies.
“We continued a favorable production trend in one-way, grew revenue per truck in dedicated and realized outsized volume growth in our power-only offering within logistics,” Leathers said. “We generated solid cash flow, executed on additional cost takeout, reduced our debt and repurchased shares during the quarter.
“While we cannot control the macro, we are focused on our long-term strategy and structural improvements to position Werner well for capitalizing on a tighter market.”
The quarterly results came in below expectations by investment analysts on Wall Street, which had been looking for 28 cents per share and quarterly revenue of $795.06 million, according to Zacks Consensus Estimate.
Truckload transportation services revenue decreased 6% year-over-year to $551.1 million from $588.3 million. Operating income declined 59% to $20.8 million from $51 million. Dedicated operations within the segment experienced a 4.1% net reduction in average trucks, but average revenue per truck per week increased 1.3% despite a highly competitive environment and isolated fleet losses.
Check out Transport Topics' updated Top 100 list of the largest logistics companies in North America, and explore how the industry's top players have adapted to a tough freight market and are preparing for the future. Tune in above or by going to RoadSigns.ttnews.com.
These operations also have healthy pipeline opportunities and strong client retention. The one-way truckload operations kept volumes steady and seasonally consistent, but revenues remained challenged by ongoing rate pressure.
Logistics revenue decreased 11% to $202.5 million from $228.7 million during the same time the previous year. The segment also experienced an operating loss of $2.33 million, compared with a gain of $4.94 million in 2023. The bulk of the segment consists of truckload logistics revenues at 76%. Those operations declined by 13% due to a decrease in shipments and a decline in revenue per shipment. Brokerage volumes decreased year-over-year, while power-only volumes increased. Intermodal revenues decreased 15% due to lower revenue per shipment that was partially offset by an increase in shipments. Final-mile revenue increased.
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