OMAHA, Neb. - Werner Enterprises, Inc. (NASDAQ: WERN), one of the nation’s largest transportation and logistics companies, reported improved revenues and earnings for the third quarter ended September 30, 2018. Earnings per diluted share increased 114% and were $0.66 for third quarter 2018 compared to earnings per diluted share of $0.31 for third quarter 2017.
Third quarter 2018 freight demand in our One-Way Truckload fleet was much stronger than normal in July and was stronger than normal in August and September. Freight demand thus far in October 2018 is stronger than normal.
Average revenues per tractor per week increased 10.3% in third quarter 2018 compared to third quarter 2017 due to a 13.4% increase in average revenues per total mile, partially offset by a 2.7% decrease in average miles per truck. Our average revenues per total mile increase expectation for the full year 2018 compared to 2017 is now in the high end of the 9% to 12% range that we noted in our second quarter 2018 earnings release. The increase in average revenues per total mile was due primarily to higher contractual rates, more freight choices with higher rates, support for customer surge business, lane mix changes and growth in our Dedicated business. The growth in our shorter-haul Dedicated fleet is responsible for the decrease in our average miles per truck, as the average miles per truck in our One-Way Truckload fleet increased slightly year over year.
Changing shipper freight replenishment patterns and faster on-time service requirements are occurring as some customers shift freight from longer-haul one-way fleets to shorter length of haul dedicated fleets. As a result, more trucks are needed to service an increasing amount of shorter-haul freight. Dedicated freight generally has lower miles per truck and higher rate per total mile metrics than longer-haul one-way truckload freight. Our 5.7% growth in average trucks in service and 2.8% growth in total fleet miles in third quarter 2018 was primarily due to the year-over-year growth in Dedicated. (condensed)
| Three Months Ended September 30, |
Nine Months Ended September 30, | |||||
| (In thousands, except per share amounts) | 2018 | 2017 | % Change | 2018 | 2017 | % Change |
| Total revenues | 629,735 | 528,643 | 19% | 1811549 | 1549372 | 17% |
| Trucking revenues, net of fuel surcharge | 409,306 | 351,114 | 17% | 1168588 | 1029036 | 14% |
| Werner Logistics revenues | 129,422 | 104,568 | 24% | 380854 | 305225 | 25% |
| Operating income | 63,386 | 35,874 | 77% | 149284 | 98759 | 51% |
| Net income | 47,514 | 22,517 | 111% | 113585 | 61755 | 84% |
| Earnings per diluted share | 0.66 | 0.31 | 114% | 1.57 | 0.85 | 84% |
