The company says that freight demand was stronger in the fourth quarter 2002 than in the corresponding period 2001. Operating margin for the fourth quarter was 7.9% for 2002, up from 7.1% in the fourth quarter 2001. In addition, the company limited fleet growth and concentrated on moving consumer goods. Werner Enterprises has a diversified fleet for hauling dry freight, refrigerated goods, and flatbed freight.
To avoid using engines that it considered insufficiently tested, Werner Enterprises bought equipment in 2002 before October 1,2002. This accelerated buying pattern reduced the average fleet age to 1.2 years in 2002, down from 1.5 years the previous year. Equipment purchases for the first half of 2003 will be below earlier averages and purchases for the second half of the year will depend on results of tests of new engine designs. Equipment is not held on operating leases, so Werner Enterprises has no off-balance sheet debt.