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Universal Logistics Posts Q1 Loss After Slow Start to Year
Intermodal Segment Remains a Drag Despite Late-Quarter Improvement
Key Takeaways:
- Universal Logistics reported a $3.51 million net loss in the first quarter after posting a profit a year earlier.
- Intermodal revenue fell more than 30% as lower volumes and pricing pressure deepened operating losses.
- Contract logistics revenue rose but operating income declined from the prior year.
Universal Logistics Holdings experienced a slow start to the year that dragged on overall first-quarter results, the company reported May 1.
The Warren, Mich.-based asset-light transportation and logistics company posted a net loss of $3.51 million, or negative 13 cents a diluted share, for the three months ending March 31. That compared with a net income of $6.01 million, 23 cents, during the same time the previous year. Total operating revenue decreased 3.9% to $367.6 million from $382.4 million.
“Our first-quarter performance reflects a slow start to the year driven primarily by continued weakness in our intermodal segment, including lower volumes and pricing pressure,” CEO Tim Phillips said. “Although we experienced positive momentum as the quarter progressed, the softness in the first two months proved to be a meaningful drag.”
Revenue by Segment
- Trucking: Decreased 9.7% to $50.2 million from $55.6 million. Load volume declined 8.9%, and the average operating revenue per load declined 6%. Income from operations fell 72.7% to $600,000 from $2.2 million.
- Intermodal: Decreased 32.3% to $47.9 million from $70.7 million. The decline reflected lower load volume and continued softness in demand and pricing pressures. The operating loss increased 22.5% to a loss of $13.1 million from a loss of $10.7 million.
- Contract logistics: Increased 5.3% to $269.5 million from $255.9 million. Income from operations decreased 26.8% to $17.5 million from $23.9 million.
“While the recovery in our intermodal franchise is taking longer than anticipated, we continue to implement operational improvements,” Phillips said.
Universal ranks No. 23 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 45 on the TT Top 100 list of the largest logistics companies.
