(Universal Logistics Holdings)
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Universal Logistics Holdings experienced drops in second-quarter profit and revenue, the company reported July 24.
The Warren, Mich.-based asset-light transportation and logistics company posted net income of $8.32 million, or 32 cents per diluted share, for the three months ending June 30. That compared with $30.7 million, $1.17, during the same time the previous year. Total revenue decreased by 14.8% to $393.8 million from $462.2 million.
“Universal’s results for the second quarter, although muted, were broadly in line with our previously guided expectations,” Universal CEO Tim Phillips said. “Our contract logistics segment continues to deliver solid results and demonstrates the strategic advantage of Universal’s diverse service offerings. Our trucking segment also performed well, sequentially growing their results on both the top and bottom lines.”
The segment’s results fell on an annual basis, however; trucking revenue decreased 29.9% to $64.1 million from $91.4 million last year, as load volumes slid 22.6% and average operating revenue per load declined 8.9%. Income from operations decreased 23.7% to $3.34 million from $4.38 million last year.
Intermodal segment revenue decreased 13.5% to $68.9 million from $79.7 million last year, as load volumes slid 12.9% while average operating revenue per load improved slightly on a year over year basis. Revenue results included accessorial charges such as detention, demurrage and storage that totaled $9.2 million. The segment posted a narrowed operating loss of $5.7 million, compared to an operating loss of $8.6 million during the same period last year.
“While our intermodal franchise continues to underperform, we are making progress on our profitability initiatives, narrowing our losses on a quarter-over-quarter basis,” Phillips said. “As we continue to navigate a persistently weak freight backdrop, we remain committed to delivering exceptional service to our customers and making strategic investments to drive our long-term growth initiatives.”
Logistics segment revenue decreased 1.1% to $260.6 million from $263.6 million, but the company was managing 87 value-added programs by the end of the quarter. That included 20 rail terminal operations, compared to a total of 68 programs at the end of the second quarter 2024. The segment includes value-added and dedicated operations. Revenue for the quarter also included $55 million from the recent acquisition of Parsec. Income from operations decreased 58.8% to $21.8 million from $52.9 million.
Universal ranks No. 27 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 43 on the TT Top 100 list of the largest logistics companies.
