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The slowing U.S. economy is impacting the finances of some of the industry’s biggest truckload carriers as Schneider National Inc. saw its third-quarter financial numbers decline.
Green Bay, Wis.-based Schneider saw net income drop 72%, to $19.7 million or 11 cents per share in the third quarter, compared with $70.7 million or 40 cents a share in 2018.
Revenue slumped 8% year-over-year, to $1.18 billion from $1.28 billion a year ago.
Company officials concede the economy is no longer as robust as it was in 2018, and that’s making business more challenging.
“Despite challenging market conditions, our core operations performed well in the quarter,” CEO Mark Rourke said. “Both volumes and price were compressed compared to a year ago; however, for the first time in 2019, we experienced a moderate seasonal lift.”
The company also said its decision to shutdown its First-to-Final Mile service resulted in a $50.4 million pretax charge which negatively impacted earnings.
Schneider’s operating ratio also struggled, increasing to 97.6 from 92.4.
Operating ratio, or operating expenses as a percentage of revenue, is used to measure efficiency. The lower the ratio, the greater the company’s ability to generate profit.
Revenue in the truckload segment fell $51.3 million, or 9% to $515.6 million.
Intermodal revenue declined $5.2 million, or 2% to $249.2 million.
Logistics revenue slumped $35.7 million, or 13%, to $236.1 million.
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 TT Top 50 list of the largest logistics companies.
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