Swift Transportation Posts Higher Profit, Lower Revenue
October 24 2016 - 7:10PM
Dow Jones News
Trucking company Swift Transportation Co., which has adopted
cost controls including scaling back its fleet amid tough market
conditions, posted a 4.7% profit increase in the third quarter
despite lower revenue.
Swift said excess capacity, high customers inventories and
sluggish demand continued to pressure volume and pricing in the
quarter.
The company affirmed its full-year guidance for earnings
excluding items of $1.30 to $1.40 a share.
Swift shares rose 2.2% to $20.73 in after-hours trading.
Last week, J.B. Hunt Transport Services Inc. said demand was
tepid, although a sharp increase in its Integrated Capacity
Solutions business helped it post a 7% revenue increase. Also last
week, Werner Enterprises Inc. reported a 5% revenue decline, but
said freight demand in the quarter showed gradual improvement from
the second quarter.
Swift said Sept. 8 that Chief Executive Jerry Moyes w ill retire
at the end of the year. Mr. Moyes launched the company in 1966 with
a single truck.
Mr. Moyes will serve as co-CEO with Richard Stocking, Swift's
chief operating officer, through the end of the year.
Over all, Swift posted net income of $38 million, or 28 cents a
share, up from $36.3 million, or 25 cents a share, a year earlier.
Revenue fell 4.9% to $1.01 billion, while revenue excluding fuel
surcharges declined 2.6% to $929.7 million.
Analysts polled by Thomson Reuters projected earnings of 32
cents a share on revenue of $1.03 billion.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
October 24, 2016 18:55 ET (22:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Werner Enterprises (NASDAQ:WERN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Werner Enterprises (NASDAQ:WERN)
Historical Stock Chart
From Apr 2023 to Apr 2024