Dive Brief:
- Schneider National’s Q2 income from operations tumbled 51% year over year to $51 million, the company reported Thursday.
- While the carrier’s truckload segment experienced a $7.6 million revenue increase during the quarter, it was offset by revenue declines in its intermodal and logistics businesses.
- Despite the setback, company President and CEO Mark Rourke said the carrier anticipates, “movement towards more typical freight replenishment and seasonality trends, contributing to continued improvement in margin performance across our operating segments.”
Dive Insight:
Schneider National’s sluggish Q2 aligns with recent poor quarterly performances by other major truckload carriers, including Werner Enterprises and J.B. Hunt Transport Services. The companies all cited the prolonged weak freight environment and overcapacity as root causes for their recent struggles.
However, Rourke said there were signs in Q2 that showed “continued progress toward market equilibrium as evidenced by moderate seasonality and a tightening spot market.”
Schneider’s truckload business benefited from organic growth and recent acquisitions, according to the company. Though its revenue per truck per week fell 2% YoY to $3,933 in Q2, the company said network revenue per truck increased 3% and revenue per truck in its dedicated business improved 2%.
The company expects a better second half of the year, as it reported Q2 volume improvements in all its business segments.
“Our results for the second quarter reflected progress in both external market dynamics and our continued internal efforts to restore margins,” said EVP and CFO Darrell Campbell.
