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Universal Logistics blames falling demand for weak first quarter


//automotive-transportation.news-articles.net/co .. lames-falling-demand-for-weak-first-quarter.html
Published in Automotive and Transportation on by FreightWaves   Print publication without navigation

Universal Logistics missed Wall Street analysts' revenue estimates of $454.1 million in the fourth quarter and earnings per share expectations of $1.04. The company's first-quarter results showed year-over-year decreases in its trucking, contract logistics, intermodal and managed brokerage segments.

Universal Logistics Holdings reported a challenging first quarter with a significant decline in both revenue and net income, attributing the downturn to falling demand across its various operating segments. The company's total operating revenue fell by 26.2% year-over-year to $410.7 million, while net income dropped by 64.5% to $14.4 million. The truckload segment saw a 35% decrease in revenue, primarily due to lower demand and reduced fuel surcharges, while the intermodal segment experienced a 31% revenue decline due to lower volumes and pricing pressures. The company's contract logistics and brokerage segments also faced challenges, with revenue decreases of 17% and 27%, respectively. Universal Logistics cited a softening freight market and ongoing economic uncertainty as key factors contributing to the weak performance, and the company remains cautious about the near-term outlook.

Read the Full FreightWaves Article at:
[ https://www.freightwaves.com/news/universal-logistics-blames-falling-demand-for-weak-first-quarter ]

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