Large Trucking Company Experiences Dip in Earnings
The trucking industry has been known for its ups and downs over the last two years or more. While consistency has been something that the trucking industry has lacked for quite some time, many hoped that losses would not continue to grow. While some issues have slowed down in the past, a recent change has many shareholders feeling tense.
Werner Enterprises Inc. is a large and successful long-haul carrier. But even companies of this stature are not immune to the effects of dwindling demand and soaring expenses. These factors and others caused the company’s second-quarter earnings to take a substantial hit. While estimates for the period were listed at $0.40 a share, actual numbers show that the total is closer to $0.25 a share.
Werner Enterprises is by no means a limited organization – the company boasts 60 years of experience in the trucking industry and is multi-faceted in their approach to freight solutions. Global outreach, advanced logistics management, and supplier diversity are just a few of the different areas where the company has succeeded. But even this type of resume doesn’t exempt an organization from financial struggles in the current economic landscape.
Many other companies have experienced similar issues since 2015 when a number of conditions caused a major strain on the industry. While slower expansion has helped some organizations stave off the negative impacts of high capacities and lower-than-normal demand, Werner’s case is particularly troubling. The second quarter is traditionally a positive time for companies in the trucking industry, therefore a dip like this is cause for concern.
Still, some maintain a positive outlook. Numerous logistics and administrative managers have predicted that the slumps of 2015-16 will end up working themselves out by late 2017, so long as organizations are tactical when it comes to their operations during these tough times.