Universal Posts Lower Profit, Declining Revenue in Q2
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Universal Logistics Holdings reported July 30 that net income and revenue were down during the second quarter compared with last year.
The Warren, Mich.-based transportation and logistics solutions company posted net income of $6.2 million, or 23 cents a diluted share, for the three months ending June 30. That compared with $20 million, or 70 cents, during the same time in 2019. Total revenue decreased by 32.7% to $258 million from $383.2 million.
Wall Street projections were 17 cents per share and quarterly revenue of $362.10 million, according to Zacks Consensus Estimate.
“Our performance during these unprecedented times once again highlights the resilience of Universal’s business model,” CEO Tim Phillips said in a statement. “We were able to accomplish all of this while staying focused on the safety and well-being of our employees, contractors and customers.”
Phillips added that the company was able to adapt to a rapidly changing environment despite a substantial portion of the customer base being shuttered during the peak of the coronavirus pandemic.
“We’re excited to see the resumption of North American manufacturing,” Phillips said. “Although it is difficult to predict the operating environment for the second half of the year, we are generally pleased with the anticipated direction of our current operations and remain committed to controlling costs and scaling our services to support customer activity.”
Universal reported revenue in the transportation segment saw revenue decrease 26.2% during the quarter to $185.8 million from $251.7 million the year prior. The segment, which primarily consists of truckload, brokerage and intermodal services, had to contend with depressed volumes. Income from operations was $10 million compared with $13.3 million a year earlier.
The logistics segment saw revenue decrease 45.3% to $71.8 million from $131.2 million. The segment includes value-added and dedicated services. The report noted that the shutdown of automotive and heavy-truck manufacturing for several weeks during the quarter adversely impacted results. Income from operations was $750,000 versus $17.3 million a year earlier.
Universal started as a provider of regional transportation services when it was founded in 1932. The company has since expanded to include offerings ranging from dry van and specialized transportation, intermodal drayage, complete material handling, value-added services and international and customs brokerage services.
Universal Logistics Holdings ranks No. 27 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. It also ranks No. 29 on the Transport Topics Top 50 list of the largest logistics companies in North America.
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