Publicly traded truckload fleets in 2018 were able to capitalize on the strong rate environment in 2018, with nearly all of them reporting higher operating revenue for the year compared to 2017.
However, those stronger revenues in many cases yielded smaller profits than the year prior, with carriers spending more on salaries and wages and purchased transportation (contracting freight to other carriers). Expenditures on salaries likely were pay increases to drivers, while the increases in purchased transportation were likely done to help carriers keep up with the surge in freight demand in the first half of the year.
For instance, Covenant Transportation (No. 38 in the CCJ Top 250) spend $63 million more on salaries and wages in 2018 than it did in 2017, with nearly $40 million of that coming in the fourth quarter alone. The carrier reported a profit of $16 million for 2018’s fourth quarter and $49 million for 2017’s fourth quarter.
Likewise, J.B. Hunt’s (No. 4 in the CCJ Top 250) revenue grew $1.4 billion in 2018 from 2017, but its net income fell nearly $200 million. The company spent nearly $800 million more in 2018 on purchased transportation and more than $300 million more in 2018 on salaries and wages.
Werner spent nearly $100 million more in 2018 on salaries and wages and $80 million more on purchased transportation.
Nearly all of the carriers listed below experienced the same, with revenues soaring but profits being constrained by increased expenditures on salaries and on purchased transportation.
Covenant Transportation
Revenue
2018: $885.4 million
2017: $705 million
Income
2018: $42.5 million
2017: $55.4 million
Diluted earnings per share
2018: $2.30
2017: $3.02
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Heartland Express
Revenue
2018: $610.8 million
2017: $607.3 million
Income
2018: $72.7 million
2017: $75.2 million
Diluted earnings per share
2018: 88 cents
2017: 90
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J.B. Hunt
Revenue
2018: $8.6 billion
2017: $7.2 billion
Income
2018: $489.6 million
2017: $686.3 million
Diluted earnings per share
2018: $4.43
2017: $6.18
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Knight-Swift Transportation
Notes on Knight-Swift: The companies merged in September 2017, meaning there’s no full year to measure against. The 2017 figures used for comparison in Knight-Swift’s earnings report are for Knight only.
Revenue
2018: $5.34 billion
2017: $2.43 billion
Income
2018: $419.3 million
2017: $484.3 million
Diluted earnings per share
2018: $2.36
2017: $4.34
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Landstar Systems
Revenue
2018: $4.62 billion
2017: $3.65 billion
Income
2018: $255 million
2017: $177 million
Diluted earnings per share
2018: $6.18
2017: $4.21
—
Marten Transportation
Revenue
2018: $787.6 million
2017: $698.1 million
Income
2018: $55 million
2017: $90.3 million
Diluted earnings per share
2018: $1
2017: $1.65
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P.A.M. Transportation
Revenue
2018: $445.9 million
2017: $373.5 million
Income
2018: $24 million
2017: $39 million
Diluted earnings per share
2018: $3.90
2017: $6.08
—
Schneider
Revenue
2018: $4.98 billion
2017: $$4.38 billion
Income
2018: $268.9 million
2017: $390 million
Diluted earnings per share
2018: $1.52
2017: 94 cents
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USA Truck
Revenue
2018: $534 million
2017: $446 million
Income
2018: $12.2 million
2017: $7.4 million
Diluted earnings per share
2018: $1.49
2017: 93 cents
—
Werner
Revenue
2018: $2.46 billion
2017: $2.12 billion
Income
2018: $168.1 million
2017: $202.9 million
Diluted earnings per share
2018: $2.33
2017: $2.80
