Schneider National – low volumes to blame for earnings miss; lowers 2019 guidance

Mike

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Schneider National, Inc. (NYSE: SNDR), a transportation and logistics services company, announced first quarter 2019 earnings of $.21 per share, $0.06 per share lower than last year and $0.10 worse than the consensus estimate.

“Our Truckload [TL] operations were impacted by a decline in contractual business, which was compounded by weather conditions in our core Midwest and East markets. This resulted in lower productivity and in costs which did not align with the demand environment. The issues that impacted the first quarter were either temporary or mostly in our control to address, which we are aggressively doing,” said Schneider’s Chief Executive Officer Mark Rourke.

Truckload (TL) revenue excluding fuel surcharges declined 3 percent year-over-year to $531.8 million as revenue per truck per week declined 2 percent to $3,606. Management said that price was positive in the quarter, but lower volumes, which resulted in lower truck utilization, drove the declines. Volumes were lower in some of the company’s primary lanes, which forced it to take on more spot shipments. Average trucks declined by 186 units to 11,573. OR for the division was 95.6 percent, 410 bps worse year-over-year.

 
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