Transportation and logistics is Werner Enterprises' game; hauling truckload shipments -- both interstate and intrastate -- is its fame. One of the five largest truckload carriers in the US, Werner operates about 6,600 tractors and more than 23,000 trailers. Its trailer fleet consists of dry vans, as well as temperature-controlled vans and flatbeds. Werner's truckload transportation offerings include dedicated contract carriage, in which drivers and equipment are assigned to a customer. It also offers freight brokerage, intermodal freight transportation, and other value-added logistic services, as well as freight forwarding. Retailers, consumer, and grocery products companies represent 75% of sales.
Previously punished by high fuel prices and a low demand for freight transportation, Werner has trimmed its medium-to-long-haul fleet in an effort to control costs and maintain profitability. The company has reduced its fleet by two-thirds over the last few years, and has continued to cut costs including non-driver headcount. Simultaneously, shorter-haul regional fleets have been expanded. As a result of these cost-cutting initiatives, Werner has seen its net sales and profits steadily rise. From 2010 to 2011, its net income surged 28% from $80 million to $103 million, while its revenues jumped 10% from $1.8 billion to $2 billion.
Werner plans to hold on to some 7,300 trucks to transport freight, mostly retail merchandise, various consumer goods and manufactured products, and groceries. It is maintaining its presence in the premium-end of the transportation market, concentrating on shippers that require broad geographic coverage and customized services, and consequently are less rate-sensitive. In addition, the company is looking for the road to open up demand for dedicated fleet services and regional truckload transportation, along with freight brokerage opportunities. Werner also is counting on its freight forwarding business to help bring customers' cargo from China to the US. The company also operates offices in the US, Australia, Canada, China, and Mexico.
Founder and chairman Clarence Werner stepped down in mid-2011, and his son Greg Werner took over as CEO. The Werner family owns about 30% of the company. – less