Werner says 2Q profit down, revenue up

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Werner Enterprises on Wednesday, July 18, reported revenues and earnings for the second quarter ended June 30. Revenues increased slightly to $531.3 million in second quarter 2007 compared to $528.9 million in second quarter 2006.

Net income in second quarter 2007 was $22.3 million compared to $28.0 million in second quarter 2006. Earnings per share decreased 15 percent to $.30 per share in second quarter 2007 compared to $.35 per share in second quarter 2006.

Despite a continued soft freight market and the impact of fuel and higher insurance and claims costs, the Omaha, Neb.-based company said it made sequential progress from first quarter 2007 when earnings per share were 36 percent lower than first quarter 2006, after adjusting for the effect of a previously disclosed customer bankruptcy charge of $.05 per share in first quarter 2006.

Freight demand softness and the temporary truck supply increase caused by the trucking industry pre-buy made for continued challenging market conditions during second quarter 2007, Werner said; load volumes for the company’s van network of nondedicated fleet trucks were lower in April and May 2007 than in the same months of the previous four years.

Load volumes in the first half of June 2007 improved meaningfully to levels nearly as high as those during the first half of June 2006, and then declined in the second half of June 2007 below levels in the second half of June of the prior four years, according to the company. Load volumes in second quarter 2007 progressively improved from April to May to June, which Werner said is a typical seasonal pattern for the second quarter.