Werner Announces Continued High Fuel Prices are Affecting Earnings
18 May 2000
Werner Enterprises Announces That Continued High Fuel Prices and a Weak Used Truck Market are Affecting Earnings
OMAHA, Neb.--May 18, 2000--Werner Enterprises, Inc. (Werner), one of the nation's largest truckload transportation companies, announced today that continued high fuel prices and a weak market for the sale of used trucks are affecting earnings. If fuel prices remain at current levels and the market for used trucks does not improve, it is estimated that second quarter 2000 earnings will be negatively impacted due to these two factors by approximately 10 to 15 cents per share.Fuel prices reached a ten-year high during first quarter 2000 compared to a ten-year low during first quarter 1999. Fuel prices today are slightly higher than the average fuel price paid by the Company during first quarter 2000. While the Company has made substantial progress in improving the percentage reimbursement from customers for the higher cost of fuel, earnings are impacted for amounts not reimbursed by customers including empty miles between freight shipments, out-of-route miles caused in part by driver home time needs, and truck idling. In addition to the impact of high fuel prices, the used truck market has weakened due to increased inventories of new and used trucks in the marketplace and other factors.
Even though the current market is very challenging, management is committed to improving earnings and shareholder value. We view these challenges as tremendous opportunities. The Company's size, superior service, advanced technology, financial strength and experienced management team provide Werner Enterprises with distinct competitive advantages.