The Werner Enterprisees management noticed some green shootings into a quarter of the quarter, but the period was dis -impaired by the adverse development of the request.
Werner (Nasdaq: Wern) reported on earnings since the fourth quarter per share of 8 cents after the market closure, 14 cents below the consensus assessment and 31 cents of the lower year of the year. The number included a hit of $ 19 million or 22 cents per share, from adverse changes in responsibility requirements.
The company said “unprecedented increase in verdicts and litigation”, despite its work on “close to 20-year-old record crashes at the Ministry of Transport in the United States, prevented accidents from one million miles.”
Werner has invested significant investment in the technology of avoiding collisions and has numerous security initiatives, but one statement deletes these efforts.
“You can have a phenomenal year and even have, on several claims, really good facts [surrounding the case]And that doesn’t always have to lead to a good outcome, “said President and CEO Derek Leathers on the call.
He noticed progress in reform of damage in some countries, but said the industry still has a long way to solve his insurance issues.
“We see that there are constant progress at state levels where we get some rationality in the room in relation to how responsibility should be treated, so one day we do not wake up with an egg of $ 35,” Leathers said.
Looking next to the insurance winds, he invited some green shoots on the truck market such as increasing the rejection of tenders and shifts from DNA for a video price. He said that unlike the past two years, external influences such as the Winter Storm now cause a reaction to rejection and rates.
The company notes that the low-to-medium little thing has so far been increasing in the one-way TL BID.
The custom result of the EPS has excluded unprecedented items such as acquisition costs, costs from insurance requests they have complained and received from investing in capital. Equipment sales gains, which were included in the number, decreased by $ 55% to $ 1.4 million. (Lower gains on sale were 2 percent wind at a normalized tax rate.)
The revenue in the TL segment decreased by 9% y/y to $ 527 million. The average service trucks decreased with a high percentage of omissions in dedicated and one -way fleets. This is partially compensated for 5.1% of the income increase per truck per week (excluding fuel adding) in one direction and a 1.1% increase in metrics for purpose.
The TL unit reported about 96.9% adjusted to a working ratio (vice versa from the work margin), 440 base points worse y/y. The leap in insurance costs was nearly 400 BP Market for segment during the quarter.
