(RTTNews) - Transportation and logistics company Werner Enterprises, Inc.
(WERN) reported on Wednesday after the closing bell that its earnings for the first quarter declined 43%, despite 2% rise in revenues, primarily due to higher operating expenses.
The Omaha, Nebraska-based Werner Enterprises' net income for the first quarter fell to $8.4 million or $0.12 per share from $15.7 million or $0.21 per share in the same quarter a year ago. On average, thirteen analysts surveyed by First Call/Thomson Financial estimated earnings of $0.14 per share.
Operating revenues for the first quarter were $512.8 million, up 2% from $503.9 million in the corresponding quarter of the previous year. Nine analysts, on average, targeted the company to report revenues of $505.64 million.
Division wise, trucking revenue fell 4.9% to $348.4 million from $366.3 million in the year-ago quarter, trucking fuel surcharge revenues grew 58.6% to $95.8 million from $60.4 million in last year quarter, non-trucking revenues of $64.1 million were 12.1% lower than $73.0 million in the prior year quarter and other revenue rose 4.7% to $4.5 million from $4.3 million in the previous year quarter.
Operating income for the first quarter declined to $13.4 million or 2.6% of revenues from $27.3 million or 5.4% of revenues in the same quarter of the earlier year.
The company attributed the lower first quarter results to unprecedented high diesel fuel prices, continued softness of freight demand, weaker demand in the used equipment sales market and worse than normal winter weather conditions.
Werner said that it made a significant progress in a difficult truckload market by increasing miles per tractor by 3.7% and revenue per total mile by 0.6% in the latest quarter.
Total operating expenses for the first quarter were $499.4 million or 97.4% of revenues, higher than $476.6 million or 94.6% of revenues in the equivalent quarter of the earlier year. Income tax expenses totaled $6.1 million in the recent quarter, compared to $11.2 million in the preceding year quarter.
The company said that it intensified its focus on the controllable aspects of fuel expense during the first quarter of 2008 by implementing numerous initiatives to improve fuel efficiency. These initiatives include reducing truck idle time, lowering non-billable miles, and continuing to increase the percentage of aerodynamic, more fuel efficient trucks in our fleet.
WERN closed Wednesday's regular trading session at $19.11, up 66 cents or 3.58%. In the after hours, the stock added a penny or 0.05% to trade at $19.12.
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