gain for 2008
Mar 2, 2009 9:44 AM
Schneider National Inc, Green Bay WI, posted a gain of $3.4 billion in revenue for 2008 from the year before, but is projecting "a very difficult 2009."
"There's no doubt that these market conditions are some of the most difficult we've seen in decades," said John Brenholt, Schneider chief financial officer. "Carriers are exiting the industry due to the environment, and many competitors are reducing the size of their fleets and running fewer trucks. Schneider is responding to industry challenges in a different manner--we're expanding our core services and making decisions to help control our destiny in what's looking like a very difficult 2009."
The company posted revenues of $3.7 billion in 2008. In addition to growing revenue, Schneider achieved its earnings plan in 2008, continuing the company's 74-year track record of positive financial results, the company said.
However, Schneider added that the freight transportation market environment has been, and will continue to be, in a deep recession. "The transportation and logistics industry faced tremendous challenges in 2008--from unprecedented fuel price volatility to unusual weather dynamics to the continuing freight recession," Brenholt said. "We were successful in light of all these challenges due to the commitment and creativity of our associates. Schneider associates continue to find ways to aggressively manage costs while focusing on operational excellence and improving service to our customers."
In light of the goods news--including the ability to pay down debt in 2008 and ending the year with one of the strongest balance sheets in company history--Schneider added that it is not immune to the current state of the economy. Freight volumes and rates continue to be soft in the early weeks of 2009.
The company said it will implement further contingency plans designed to protect associates, customers, and the company from the turbulent economy and to ensure its long-term success. Plans include suspending pay increases in 2009 for all associates and deferring funding for retirement plans and 401(k) company-matches until year-end.
According to Tim Fliss, Schneider executive vice-president of human resources, the contingency plan affects all of the company's 21,000-plus management, administrative, driver, maintenance, and distribution center associates. All adjustments will be reevaluated at year end to determine appropriate actions moving forward.
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