Schneider Posts Record 1Q Profits, Raises Forecast for Year
Schneider National posted record earnings and double-digit gains in revenue in the first quarter of 2018 and raised its profit forecast for the year.
The Green Bay, Wis.-based company earned $47.6 million, or 27 cents a share, on revenue of $1.14 billion in the three months ended March 31. That compared with net income of $22.6 million, or 14 cents a share, on revenue of $1 billion in the same period a year ago.
Schneider provides truckload, intermodal and logistics services, and all of the segments reported “solid returns,” CEO Chris Lofgren said in a statement April 26.
Lofgren said market conditions “were unlike any we have experienced in over a decade” and are likely to persist for some time.
“Demand and bid activity were strong,” Lofgren noted. “Our broad portfolio of services, disciplined approach to revenue management and capital allocation allowed us to excel in the market. Our ability to offer customers alternative transportation solutions and deliver upon them allowed us to manage commitments, driving our financial performance in the quarter.”
Truckload revenue, including fuel surcharge, was $551.3 million in the first quarter of 2018, a 6% increase from $522.1 million in 2017. Revenue per truck per week was $208 higher than a year ago. In addition, the company’s new First to Final Mile delivery service contributed about $60 million in revenue with a fleet of about 1,350 trucks.
Intermodal revenue increased 11% to $201 million in the first quarter of 2018 from $181.1 million a year ago. Revenue per order was $1,982, an increase of $97, or 5%, compared with the first quarter of 2017 due to higher prices and growth in transcontinental shipments. The company added more than 450 containers to its intermodal fleet during the quarter.
Logistics revenue was $220.8 million in the first quarter of 2018, a gain of 20% from $183.9 million in the same period in 2017. Brokerage volume was up 10% in the most recent quarter and accounted for 77% of total logistics revenue compared with 72% for the same quarter a year ago.
“We anticipate continued improved market fundamentals and improved performance in all of our segments,” Lofgren said, “led by the less-driver-intensive intermodal operations.”
For the year, Lofgren said it expects earning to be in the range of $1.38 to $1.50 a share and with little growth in tractor numbers expected, capital expenditures will remain in the range of $325 million to $375 million.
Schneider ranks No. 6 on the Transport Topics Top 100 list of largest for-hire carriers in North America and No. 18 on the Transport Topics Top 50 list of largest logistics companies.
