Werner Inc. Posts Large Profits At End of 2015
Where all other big trucking firms suffered a loss by the closing of 2015, one company celebrated a jump in their profits despite what had been predicted as weak market condition, reaping the befits all trucking companies aim to gain from diverse business models.
Werner Inc. reported that by the end of the fourth-quarter, the company saw a 12% rise from the last with a $3.36 million in profits. Analysts believe that the reason for such high profits is due to the fact that the company added 400 more vehicles to its current fleet of 7,000 trucks, which ultimately lowered the age of its truck giving the company an advantage of better management in terms of maintenance and repair costs.
When asked why the company was investing so much in new trucks, the called it off a as a tactic to recruit more drivers and reduce the turnover rate which is one of the main reason for additional costs.
Werner Inc. is one of the largest Omaha, Neb.-based full truckload companies in the US which has been providing services for shippers, including a division of freight management and truck brokerage. The company’s operating income saw an 84% rise in the previous year, aiding Werner’s bottom-line freight demand, reduced surcharge revenges and eventually raised drivers pay. Donald Broughton, an analyst at Avondale Partners LLC believes that Diversification “is one of the advantages to having a non-asset based business in addition to your asset-based business.”
Mr. Broughton believes that the increase in profitability is a good sign that the company’s management is efficiently doing its job regardless what the Wall Street analyst claimed as a tough year for the truck industry.
“Having a well-developed brokerage business allows you to better manage the market conditions,” he added.
Although everything seems to be working in their way, the company still warns many challenges keeping in view the forthcoming market conditions. The company spokesperson added,
“We are continuing to work with our customers to recoup the cost increases associated with more expensive equipment, a shrinking supply of qualified drivers and an increasingly challenging regulatory environment.”
Undoubtedly, Werner is opening its arms to welcome all those with their best truck driving jobs vacancies for all those who are looking for one in US and have a prior experience in truck driving. – See more at: http://truckernews.com/werner-inc-posts-large-profits-at-end-of-p680-90.htm#sthash.Qc6lrFFF.dpuf