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Dive Summary:
- Schneider National’s truck segment saw revenue fall 6 percent year over year to $535.3 million in the third quarter, the company reported on Thursdayblaming the challenging fare market and unfavorable pricing.
- The drop in its truckload segment in the third quarter was partially offset by organic growth and revenue from M&M Transport, which it acquired in August, the company said.
- Chairman and CEO Mark Rourke: “We have an eye on a number of new businesses in the fourth quarter of 2023 and the first quarter of 2024, giving us confidence that our momentum in loyalty will continue.” analysts said.
Dive Insight:
Schneider has turned to acquisition to grow its dedicated division. In addition to M&M, it announced its Ohio-based purchase Midwest Logistics Systems in January 2022 and six months later it was purchased deBoer Transportation.
The company has seen benefits from the acquisitions, said EVP and CFO Stephen Bruffett, who is retiring in December.
“The growth of our dedicated business, both organically and through acquisitions, supports earnings in our truck segment,” said Bruffett. Special services grew up from 33% of its truck segment in 2017 to 57% in 2022.
The company expects weak freight conditions to continue until the end of the year, although Bruffett hopes the commodity market will improve early next year.
Rourke said the company is motivated to continue growing its dedicated business because of its acquisitions, especially M&M and Midwest Logistics Systems.
“The acquisition synergies and performance are exceeding our expectations and it’s really a great credit to the driver shop and business teams at both of these companies,” he said.