Werner says earnings down in 3rd quarter

Net income and per-share earnings at Werner Enterprises were down for the third quarter of 2009 compared to last year, but the company said freight volumes showed “encouraging seasonal improvement” during the period.

Omaha-based Werner, one of the country’s largest transportation and logistics companies, reported earnings of $19 million, compared to $22.4 million the previous year.

Revenue was $429.3 million in the quarter ending Sept. 30, compared to $584.1 million for the same period in 2008.

After the earnings report, the company’s stock was one of the biggest gainers on Wall Street in midday trading, climbing 12 percent to $20.85, the highest since June 2001. Per-share net income of 26 cents was down from 31 cents a year ago but beat the average analyst estimate by 32 percent.

The stock price closed Tuesday at 20.97. per share, up 2.31.

Freight shipments during the fourth quarter will depend on consumer demand during the holiday season, the company said in a press release.

“Pricing remains extremely competitive,” it said.

Werner responded to softer shipping demand by reducing its average fleet size by 10 percent in the third quarter of 2009 compared to the same period in 2008. No further reductions are planned, the company said, unless significant declines in orders occur.

Diesel prices were down about $1.60 in the third quarter of this year, which along with other company initiatives helped reduce fuel costs. Werner spent $66 million on fuel during the latest period, compared to $145.3 million the previous year.

Nine-month net income was $38.6 million, or 54 cents per share, this year compared with $48.9 million, or 68 cents per share, last year. The company said it ended the quarter with no debt and with $105.8 million in cash.

This report includes material from Bloomberg News.

Contact the writer:

444-1050, pat.waters@owh.com

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