Schneider National Inc. reported lower first-quarter net income and slightly higher revenue as its truckload unit faltered.
Net income for the period ended March 31 fell 22% to $36.9 million, or 21 cents per diluted share, compared with $47.6 million, or 27 cents, a year earlier. Revenue climbed 5% to $1.19 billion compared with $1.13 billion.
“Compared with first-quarter 2018, our truckload segment experienced declines in revenue and earnings, while our intermodal segment grew revenue despite adverse weather, and our logistics segment delivered revenue growth and expanded margins,” Schneider CEO Mark Rourke said in a company statement.
Truckload operations, the largest unit, reflected a decline in contractual business which was compounded by weather conditions in its core Midwest and East markets, he added.
“This resulted in lower productivity and in costs which did not align with the demand environment,” Rourke said. “The issues that impacted the first quarter were either temporary or mostly in our control to address, which we are aggressively doing.”
Rourke said the truckload segment has added new business, and work is underway to adjust costs.
“Our intermodal and logistics businesses are well-positioned for continued year-over-year growth. As such, our outlook for the remainder of 2019 remains largely intact,” he said.
At the truckload segment, income fell 50% to $23.2 million compared with a year earlier. Revenue fell 3% to $531.8 million.
The intermodal unit’s income dropped 10% to $19.9 million. Revenue grew 18% to $237.6 million compared with a year earlier.
Intermodal revenue per order improved due to carryover of 2018 rate renewals, first-quarter 2019 rate renewals and increased length of haul, according to the Green Bay, Wis.-based company.
Income from logistics operations soared 32% to $10.3 million on revenue of $243.9 million, or 10% more compared with a year earlier.
The increase was primarily due to brokerage volume growth, combined with effective net revenue management.
Schneider ranks No. 7 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 16 on the Transport Topics Top 50 list of the largest logistics companies in North America.