Schneider National has reported its quarterly results for the three months ending March 31, 2017. These were the first set of financial results since its IPO on the New York Stock Exchange in April and included an 8.4% year-over-year revenue increase to $1,006.4m and a 2.8% drop in adjusted EBITDA to $112.7m.
Schneider’s Truckload segment, its largest operating area, saw revenues grow 6.4% year-over year. It said this was due to the acquisition of Watkins & Shepard and Lodeso, although this was partially offset by a decrease in freight volume in the company’s dedicated and for-hire standard businesses. Its income from operations decreased 8.7% to $38.5m in this area.
The Intermodal segment of the business saw a 2.0% revenue decrease to $181.1m. Schneider stated that a soft pricing environment, and decrease in long haul activities led to this drop, although volumes in total were up 6.2%. Income from operations decreased by 6.4% to $6.6m, largely as a result of increased expenditure on equipment.
Its operations in its Logistics segment contributed $183.9m to total Q1 revenues, representing an increase in the segment of 10.3% year-over-year. Growth here was caused by positive results in its brokerage and import & export business. Income from operations were up 0.1% year-over-year to $5.2m.
Looking ahead, Chris Lofgren, Chief Executive Officer of Schneider, said “We anticipate the market pressures of first quarter 2017 to carry into the second quarter. However, we expect improving market conditions in the second half of 2017 driven both by an improving freight market as well as concerns surrounding the impending ELD (Electronic Logging Device) mandate.”
Source: Schneider National