Werner Enterprises profit slips as fuel costs soar

Werner said fuel costs jumped about 55 percent over the year-ago period to $155 million, and that it does not recover the entire fuel cost increase through surcharge programs.

The Associated Press

7/18/2008

NEW YORK — Trucking company Werner Enterprises Inc. said Thursday its second-quarter profit dropped as fuel prices jumped, but results still beat Wall Street’s expectations.

For the period ended June 30, Werner posted profit of $18.1 million, or 25 cents per share, compared with profit of $22.3 million, or 30 cents per share, in the year-ago period.

The number of outstanding shares fell to 71.4 million from 74.7 million.

Revenue increased 9 percent to $578.2 million, from $531.3 million last year. Excluding a trucking fuel surcharge, revenue slipped to $443.3 million from $457.9 million in the second quarter of 2007.

Analysts polled by Thomson Financial expected, on average, profit of 20 per share on revenue of $548.4 million.

Werner said fuel costs jumped about 55 percent over the year-ago period to $155 million, and that it does not recover the entire fuel cost increase through surcharge programs.

“Increases in the cost of fuel may continue to negatively impact earnings per share until freight market conditions allow the company to recover this shortfall from customers,” Werner said in a release.

Shares gained 87 cents, or 4 percent, to $22.83 in aftermarket electronic trading, from their close at $21.96 in the regular session.