Q1 2024 Schneider National Inc Earnings Call Transcript
Key Points
- Schneider National Inc (SNDR) experienced positive contract price renewal closures in the low single digits for the truckload network for the first time in 6 quarters.
- The company has maintained flexibility with its company truck count, positioning it to take advantage of an improved market when it materializes.
- Schneider National Inc (SNDR) saw year-over-year growth in the dedicated truck count, which now represents 62% of truckload tractors, indicating a strong pipeline and successful new business implementations.
- Intermodal segment showed signs of healing with new business awards and dray cost efficiency gains, and flat contractual renewals compared to a constructive period last year.
- Logistics segment demonstrated resilience with power-only order volumes growing each month through the quarter and year-over-year, maintaining pricing discipline to ensure accretive returns.
- The first quarter faced challenges with excess capacity conditions and sluggish volumes, exacerbated by adverse winter weather impacting a large portion of the network.
- Revenue per truck per week in the truckload network contracted 10% year-over-year, primarily due to depressed rates.
- Intermodal segment's revenue per order was down 7% compared to the first quarter of the previous year.
- Logistics operating margins eroded over 300 basis points compared to the first quarter a year ago, despite only a slight sequential erosion from the fourth quarter.
- The overall market conditions remain uncertain with cautious shippers and varying results in contract pricing, leading to an updated and lowered earnings guidance for 2024.
Ladies and gentlemen, thank you for standing by. Welcome, everyone, to the Schneider First Quarter Earnings Call.
(Operator Instructions)
I will now hand the call over to Mr. Steve Bindas of Schneider. You may begin your conference.
Thank you, operator, and good morning, everyone. Joining me on the call today are Mark Rourke, President and Chief Executive Officer; Darrell Campbell, Executive Vice President and Group President of Transportation and Logistics.
Earlier today, the company issued an earnings press release. This release and an investor presentation are available on the Investor Relations section of our website at schneider.com. Our call will include remarks about future expectations, forecasts, plans and prospects for Schneider. These constitute forward-looking statements for the purposes of the safe harbor provisions under applicable federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ
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