Werner Enterprises Q2 Revenues and Net Income Down

Werner Enterprises, Inc. (NASDAQ: WERN), one of the nation’s largest transportation and logistics companies, reported a drop in revenues and earnings for the second quarter ended June 30, 2016.

Specifically, revenues were down 7% and net income off 43% compared to the same period in 2015.

Earnings per diluted share were $0.25 for second quarter 2016.  The company noted that “the principal reasons for the earnings decline in second quarter 2016 compared to second quarter 2015 were (i) sluggish freight market conditions, (ii) the cost of driver pay increases implemented in first quarter 2016 and independent contractor per mile increases in fourth quarter 2015 and (iii) a soft used truck market.”

Werner also stated: “Second quarter 2016 freight demand was significantly softer than freight demand in the second quarters of the prior two years. Demand was weakest in April 2016 and showed some modest seasonal improvement in May and June. Freight volumes and transactional spot market pricing in the One-Way Truckload market were disappointing relative to expectations. During June 2016, we shifted approximately 150 trucks from One-Way Truckload into Dedicated to lessen the impact in the more difficult One-Way Truckload market. Freight demand thus far in July 2016 has been better than most comparable July-to-date time periods, and this has begun to help improve transactional spot market pricing.”

Average revenues per tractor per week, net of fuel surcharge, decreased 5.8% in second quarter 2016 compared to second quarter 2015 due to a 3.8% decrease in average miles per truck combined with a 2.1% decrease in average revenues per total mile, net of fuel surcharge.

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