US fleet Werner Enterprises has reported an 11 per cent increase in operating income for the fourth quarter of 2013 over Q3, but said full-year revenue stagnated at around $2 billion.
According to Werner, the jump from $32.6 million to $36.1 million in the last quarter of 2013 was due primarily to a “more favorable” freight market in North America.
“Fourth quarter 2013 freight demand … showed normal seasonal improvement in October and November, with some further demand strengthening during this quarter’s compressed retail selling period between Thanksgiving and Christmas compared to the same holiday period a year ago,” the company said.
“Freight trends thus far in 2014 have been better than the same period in 2013. Severe weather in December 2013 and early January 2014 created a build up of freight demand but also resulted in higher operating expenses such as maintenance and insurance and lower miles per truck.”
On the equipment front, the company said it would continue to invest into innovative equipment solutions including more aerodynamic truck features, idle reduction systems, tyre inflation systems and trailer skirts to improve the mile-per-gallon efficiency of its vast fleet. “Net capital expenditures in 2013 were $152 million. We estimate capital expenditures for the year 2014 to be in the range of $150 to $200 million,” the company said.