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A performance measure involving Heartland Express acquisitions suffered through the 2023 peak period, signaling continued challenges amid sluggish demand plaguing the trucking industry.
Carrier reason for CFI and Smith Transport settled at 103.8% for the time. In the first nine months of 2023, this operating index was 101.6%.
The results reflected a “continued weak freight environment coupled with excess capacity throughout the year,” CEO Mike Gerdin said in an earnings release, noting how those two acquisitions from 2022 “have pressured the financials our results at a level lower than our historical results and management. expectations.”
However, the carrier sees long-term potential and is using the additions to scale its operations and hit an all-time record of $1.2 billion in annual revenue in 2023.
“We anticipate that we can improve our consolidated operating results within three to four years after the 2022 acquisitions to align with our historical operating results,” Gerdin said in the earnings release.
Heartland has previously said it plans to reduce its operating ratio to the low 80s within three years after the 2022 acquisitions. Its overall operating ratio was 96.5% for the year.