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Universal Logistics Holdings saw revenue increase but net income decline during a first quarter marked by what its leader described as a “deteriorating operating environment caused largely by the COVID-19 pandemic.”
The Warren, Mich.-based transportation and logistics solutions company reported that total revenue rose 1.3% to $382.2 million for the three months ending March 31 compared with $377.4 million a year ago.
Net income fell to $12.2 million, or 45 cents per basic and diluted share, compared with $17.3 million, or 61 cents, in the year-ago time frame. The Q1 results included $3.4 million of pre-tax holding losses on marketable securities due to changes in fair value recognized in income. This compares to $900,000 of pre-tax holding gains in the first quarter of 2019.
Wall Street analysts polled by Zacks Consensus Estimate expected earnings per share of 35 cents and Q1 revenue of $390.4 million.
“We started off the year with high expectations, but as the virus overwhelmed our international trading partners, particularly China, and then rapidly spread here at home, it became increasingly apparent that the negative impact would last longer than everyone originally predicted,” Universal CEO Tim Phillips said in a statement.
The company’s transportation segment saw total Q1 operating revenue increased 3.1% to $254.7 million from $246.7 million, while operating income decreased 3.3% to $12.1 million from $12.5 million a year earlier. This segment is primarily truckload, brokerage and intermodal services operations, and was negatively impacted by significant declines in drayage activity in Universal’s Southern California intermodal operations, it said.
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The logistics segment saw total Q1 operating revenue slip 2.6% to $127 million from $130.3 million, while income from operations decreased to $11.7 million from $13.8 million the prior year. This segment, which includes value-added and dedicated services, was impacted by the shutdown of North American automotive and heavy-truck manufacturing in the last two weeks of the quarter, Universal said.
Universal Logistics started as a provider of regional transportation services when it was founded in 1932. The company has since expanded to include logistics services ranging from dry van and specialized transportation, intermodal drayage, complete material handling, value-added services and international and customs brokerage services.
Universal ranks No. 29 on the Transport Topics Top 50 list of the largest logistics companies in North America.
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