Truckload, intermodal and logistics provider Schneider National on Oct. 28 reported a 147% earnings increase in the third quarter of this year over the same period last year.
Net income for Green Bay, Wisconsin-based Schneider grew to $110 million, or 62 cents a diluted share, for the three months that ended on Sept. 30, the company reported. During the same period last year, Schneider reported a net of $44.5 million, or 25 cents per diluted share. The net year-over-year increase was $65.5 million. Third quarter 2021 results did include a pre-tax net loss of $3.1 million on equity investments.
"The third quarter represented the most profitable period in our history," said Mark Rourke, Schneider’s president and CEO. "We continue to effectively utilize our scaled and diversified platform to deliver solutions for the rapidly changing needs of our valued customers. I’m proud of our team’s performance and want to express special appreciation to our professional driver community."
"We anticipate that the freight conditions of the third quarter will be sustained through year end and likely through 2022," Rourke continued. "As we prepare for the upcoming year, our plans include ongoing investments in technology and trailing assets that will further expand the reach of our asset-light and non-asset offerings while providing a seamless customer experience."
All Schneider business segments—truckload, Intermodal, and logistics—reported third-quarter increases.
Truckload surges $24.2 million
In Schneider’s truckload segment, excluding fuel surcharges, for Q3 of 2021 were $484.4 million, an increase of $24.2 million or 5% compared to the same quarter last year, primarily due to effective revenue and network management and dedicated growth, partially offset by lower truckload network fleet count and lower miles per tractor. Truckload revenue per truck per week was $4,060, an improvement of 15% compared to the third quarter of 2020, the company reported.
Truckload income from operations was $85.1 million in the third quarter this year, an increase of $39.5 million, or 87%, compared to Q3 2020. Revenue and network management, $29.3 million of gains on the sale of revenue equipment, and cost alignment initiatives during the quarter more than offset lower utilization and higher driver and related costs. Truckload segment operating ratio was 82.4% in the third quarter of 2021, compared to 90.1% in the third quarter of 2020.
Intermodal up $47.3 million
Intermodal revenues (excluding fuel surcharge) for the third quarter were $295.7 million, an increase of $47.3 million, or 19%, compared to the same quarter in 2020 due to increased revenue per order and volume growth mainly in the company’s eastern U.S. operations, Schneider reported.
Revenue per order was $2,624, a 20% improvement compared to the third quarter of 2020. Container fluidity remained challenged in the quarter because of extended dwell times at customer locations and rail network disruptions. Schneider grew its container fleet sequentially by over 1,600 units, or 7%, in Q3 2021.
Intermodal income from operations for the third quarter of 2021 was $45.7 million, an increase of $22.7 million, or 99%, compared to the same quarter in 2020. Intermodal operating ratio was 84.5% in the third quarter of 2021, compared to 90.7% in Q3 2020.
Logistics segment rises $190.2 million
Logistics revenues (excluding fuel surcharge) for the third quarter were $474.6 million, an increase of $190.2 million, or 67%, compared to the same quarter in 2020 due to continued leverage of Schneider FreightPower, increased spot mix, and supportive market conditions. Brokerage volumes grew 24% year-over-year, the company said.
Logistics income from operations for the third quarter of 2021 was $22.1 million, an increase of $13.0 million, or 143%, compared to the same quarter in 2020, primarily due to increased net revenue per order and volume growth. Logistics operating ratio was 95.3% in the third quarter of 2021, compared to 96.8% in the third quarter of 2020.
"As evidenced by our updated guidance of $2.13-$2.17 for full year adjusted diluted earnings per share, we anticipate continued strong demand throughout the fourth quarter," Rourke added. "We also expect to carry strong momentum into 2022, as we anticipate robust freight conditions likely through the upcoming year. Regarding our 2021 full-year net capital expenditures, we now expect approximately $300 million, which is lower than prior guidance due to higher proceeds from equipment sales, as well as modest delays in equipment deliveries."