Company earnings

Schneider adds dedicated fleet in $263M deal

Another deal from a publicly traded carrier

Schneider (NYSE: SNDR) announced Tuesday it has acquired dedicated truckload carrier Midwest Logistics Systems (MLS) at an enterprise value of approximately $263 million.

Ohio-based MLS operates a fleet of 900 tractors throughout 30 central U.S. locations. The company generated $205 million in annual revenue ($170 million excluding fuel surcharges) for the 12-month period ended Sept. 30. It has approximately 1,000 drivers and support staff of 170. No margin information was provided but the deal...

https://www.freightwaves.com/news/schneider-adds-dedicated-fleet-in-263m-deal

Yellow gets 1-notch upgrade from Moody’s

Yellow Corp. has achieved a significant milestone with an upgrade of its debt rating from Moody’s Investors Service.

The ratings agency last week increased Yellow’s corporate family rating to B3 from Caa1. Both ratings are in the non-investment grade category, colloquially known as “junk.”

But the move upward is not just a step up by one notch. It takes Yellow’s (NASDAQ: YELL) debt from a rating that is considered low enough that a default is possible to one still said to be carrying significant...

https://www.freightwaves.com/news/yellow-gets-1-notch-upgrade-from-moodys

2021’s most transformational deals in trucking

Some carriers made noncore additions to the lineup in 2021

Deal flow was heavy in the trucking industry during 2021. Most players in the space have seen multiple quarters of record earnings and cash flows. Whether it was looking for a place to put newfound cash to work, adding drivers and equipment in a capacity-constrained market or bolting on a new mode to the transportation offering, many carriers were actively vetting deals and buying assets.

Here’s a recap of a few of the most transformational deals in trucking during 2021.

Knight-Swift goes all in...

https://www.freightwaves.com/news/2021s-most-transformational-deals-in-trucking

Why is transportation M&A so hot?

Carriers are looking to make accretive deals

M&A in the transportation and logistics industry was up in a big way in 2021. Many of the catalysts in place during the year appear likely to continue.

After multiple quarters of record earnings, transportation companies are flush with cash and need a means of deploying it. Other industry participants are merely looking to gain more control of their supply chains, which are severely disrupted after a post-COVID economic rebound met a transportation network ill-equipped for a freight surge.

Add in...

https://www.freightwaves.com/news/why-is-transportation-ma-so-hot

FedEx fiscal Q2 results: Not perfect but good enough

It was not a world-beating quarter for FedEx Corp. But it was more than adequate to give analysts and investors hope that the worst of the staffing shortages and operating problems plaguing the company for months were mostly behind it. 

FedEx’s (NYSE: FDX) fiscal 2022 second-quarter results, which were announced late Thursday, had more good news than bad. Adjusted operating income rose more than 11% to $1.68 billion, and adjusted diluted earnings per share of $4.83 were well above median...

https://www.freightwaves.com/news/fedex-fiscal-q2-results-not-perfect-but-good-enough

FedEx posts decent fiscal Q2 results; Ground unit’s costs weigh

A white FedEx plane, with blue and red lettering, side view of front.

FedEx Corp. reported decent fiscal 2022 second-quarter results late Thursday, as higher-yielding volumes helped offset the ongoing cost drag of labor shortages at its FedEx Ground unit that have cut into operating margins.

In addition, the board of the Memphis, Tennessee-based shipping and logistics giant (NYSE: FDX) authorized a program to buy back $5 billion of its common shares. This follows a 2016 buyback authorization of up to 25 million shares, of which 2.3 million remain available for...

https://www.freightwaves.com/news/fedex-posts-decent-fiscal-q2-results-ground-units-costs-weigh

Yellow Corp sees tonnage drop, yields surge in Q4

Yellow sees yields jump more than 20% in Q4

Less-than-truckload carrier Yellow Corp announced negative tonnage trends for the first two months of the fourth quarter, but that’s largely by design. Tons per day fell by approximately 10% year-over-year in October and November, the company said in a Thursday press release issued after the market closed.

Compared to peers, some of which experienced double-digit gains, that’s quite a falloff. However, the disruption to Yellow’s (NASDAQ: YELL) volumes is expected to be short-lived.

Table: Company...

https://www.freightwaves.com/news/yellow-corp-sees-tonnage-drop-yields-surge-in-q4

Forward Air’s freight swap pushing shipment yields up

Forward Air executes premium strategy in October and November

Forward Air announced Thursday that revenue per shipment accelerated further in November. The metric surged 61% year-over-year during the month in its expedited unit, which includes less-than-truckload, truckload and final-mile services. That was ahead of the 52% growth rate logged in October.

The asset-light trucking provider is in the process of “cleansing” its customer book and onboarding heavier, higher-valued cargo. Forward (NASDAQ: FWRD) is deepening its roots in sectors like industrial...

https://www.freightwaves.com/news/forward-airs-freight-swap-pushing-shipment-yields-up

Landstar paying $2 special dividend after record 2021

Landstar continues to return cash to shareholders through dividends and share repurchases

Truck broker Landstar System announced it will be paying shareholders a special dividend of $2 per share for the third consecutive year in a press release issued after the market closed Wednesday. The company’s board also increased the share repurchase authorization to 3 million shares, up from the 1.1 million previously outstanding.

Landstar (NASDAQ: LSTR) has had quite the year in 2021. Through its network of nearly 100,000 truck capacity providers, the broker rode a hot freight market, which...

https://www.freightwaves.com/news/landstar-paying-2-special-dividend-after-record-2021

Old Dominion’s Q4 update leads pack

Old Dominion poised to outpace long-term margin goal in 2021

Old Dominion Freight Line saw a continuation of robust growth rates during November. The less-than-truckload carrier credited a strong economy and its efforts to win market share as the reasons.

Daily revenue increased 29.9% year-over-year in November as tons per day increased 11.5% and revenue per hundredweight, or yield, was up 16.6%. November results reflected a modest deceleration from the October comps (revenue +35.7%, tonnage +16.4%). Yields increased by the same amount in both months and...

https://www.freightwaves.com/news/old-dominions-q4-update-leads-pack

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