Lower freight volumes and rates, along with declining fuel surcharge revenues drove revenues down for Cudahy-based Roadrunner Transportation Systems during the second quarter of fiscal 2016.
The asset-light transportation and logistics service provider reported net income of $1.8 million, an 89 percent drop from the previous year. The company reported earnings of 5 cents per diluted share, compared to 42 cents last year.
Revenue was down 6.6 percent to $483.4 million.
Mark DiBlasi, Roadrunner chief executive officer, said the results were “well-below expectations” and even though the current environment is challenging, “we are disappointed in our performance.”
He added that business ran counter to historical seasonal trends, with the second quarter worse than the first.
The company reported its total tonnage was down 12.7 percent to 313,900 and shipments were down 6.6 percent to 573,700.
DiBlasi noted the company’s earnings were 15 cents off from consensus estimates and said the truckload logistics segment accounted for two-thirds of the miss. The original equipment manufacturer and intermodal services group was mostly responsible for the challenges, but DiBlasi said the company has several initiatives in place to improve performance.
He said he was encouraged by current OEM volumes.
The less-than-load segment revenue was down 11.9 percent to $122.3 million, driven by lower fuel surcharge revenue and weak freight demand in general industrial markets.
Global services revenue was down 16.3 percent to $83.6 million.