Business

EVERGREEN, Colo. — Freight Processing Outsourcing firm DDC FPO says it has developed a new auto-extraction and structuring solution for freight as part of its platform of supply chain services and products. “Today, companies are inundated with a staggering 80% to 90% of unstructured data,” said DDC FPO Chief Information Officer Richard Greening. “Every label or form is unique. While there may be some standardization, the vast amount is free form. That 80-90% slows down operations. We are committed to removing that burden from our clients’ teams.” According to a news release, the newest addition engages automated machine learning technology. DDC FPO officials say they use it “to cleanse and structure raw data from freight documents into vital information, applies client business rules and transmits information via APIs to the client’s preferred system — all within seconds of receipt.” The solution also intelligently learns with each document it processes, which allows it to have continuous refinement of the solution’s capabilities. “Data and analytics are central to every freight operation, and optimizing for digitization is key for those providers pursuing a competitive advantage in the supply chain,” Greening said. “To achieve that, one step is to ensure TMS and accounting systems obtain structured information at the time of pick-up.” Auto-extraction and structuring “delivers precise and timely data seamlessly to customers’ preferred information management systems,” the news release stated. According to DDC FPO, some benefits include: Addressing the challenge of consolidating data from diverse sources, including emails, PDFs, images, invoices, paper files, contracts, and more. Providing superior service by proactively routing shipments, optimizing capacity, and invoicing customers accurately. Increasing profitability by streamlining collection processes and reducing administrative time, errors, and costs. Continuous improvement and growth by intelligently learning with each document for ongoing refinement and increased speed without human intervention. “We are dedicated to advancing the supply chain and modernizing the industry,” said DDC FPO’s Group Chief Executive Officer, Jan Trevalyan. “Auto-Extraction & Structuring is fueled by DDC FPO’s 34 years of data capture experience, 18 years of freight expertise, and proprietary, cutting-edge technology.” Trevalyan added, “With this solution, we are laying the foundation for true digital transformation in freight transportation.”

NEENAH, Wis. — To help motor carriers properly follow all post-accident procedures, as well as conduct a thorough investigation of a crash, J. J. Keller & Associates has introduced its new Accident Investigation Procedures Training Service. This onsite, consultant-led program trains a carrier’s fleet manager to understand the post-accident Federal Motor Carrier Safety Regulations (FMCSR) requirements, determine if a driver followed the proper procedures, take corrective action based on the results of an investigation, conduct corrective action training as needed and challenge the preventability of a crash via DataQs. “What makes this training so special is that it not only trains managers on how to quickly and accurately respond to an accident by meeting the letter of the FMCSA standards,” said Sean Nebert, director of transport consulting services at J. J. Keller, “but also how to conduct an investigation that can protect the carrier from legal liability while preventing future accidents.” J.J. Keller’s new training service covers: Driver accident procedures. Accident registers. Drug and alcohol testing requirements. Tiered responses to accidents. Evidence and data preservation. Accident reconstruction. Root cause and preventability analysis. FMCSA crash preventability determination. Follow-up responses to prevent future accidents. “After a crash, there’s a lot to do in a short window of time,” Nebert said. “By having the proper training and processes in place, carriers greatly reduce their risk of costly mistakes being made.” For more information about J. J. Keller’s Accident Investigation Procedures Training Service, visit JJKellerConsulting.com/accident-investigation or call (844) 803-0172

PORTLAND, Ore. — Daimler Truck North America (DTNA) has announced its partnership with Hexagon Purus to provide complete vehicle integration of the battery electric Freightliner eM2. The integration will incorporate Hexagon Purus’ proprietary zero-emission technology, which includes battery systems, auxiliary modules and more, according to a news release. It will also have power-take-off options for supplying power to the vocational body and the equipment.  DTNA executives said their decision to agree to this partnership was based on the long-standing relationship and shared expertise with Hexagon Purus. In a previous project where both parties worked together, DTNA worked with the Agility division of Hexagon on developing a Freightliner natural gas fuel tank integration and Hexagon’s zero-emission division on the first generation of electric vehicles of DTNA. “We are excited about our collaboration with Hexagon Purus and the potential it holds for the future of electric vocational trucks,” said Aaron Scates, vice president of vocational and medium-duty market development at DTNA. “With our shared history, combined experience, and the remarkable battery technology offered by Hexagon Purus, we look forward to yielding effective and flexible solutions for our vocational customers.” Earlier this year, DTNA unveiled the vocational Freightliner eM2 prototype truck with vocational upfit options as part of an innovation project together with selected Truck Equipment Manufacturers, Alamo and Altec, to lay the groundwork for expanding zero-emission solutions for vocational customers, particularly in the utility, sweeper, dump, construction, towing, and refuse segments. “We are proud to continue our long-standing relationship with DTNA, and we look forward to supporting them on this vocational vehicle program and driving their transition to zero-emission mobility,” said Morten Holum, CEO of Hexagon Purus. “DTNA has been an important zero-emission technology development partner for Hexagon Purus in North America for several years through our participation in the Innovation Fleet program.”

GREEN BAY, Wis. — Schneider National has announced financial results for this year’s third quarter. “Our enterprise experienced year-over-year declines in revenue and earnings in the third quarter, a period which we believe represents the most challenging phase of this prolonged freight recession,” said Mark Rourke, president and chief executive officer of Schneider. “Our results were driven by ongoing price pressures primarily in our network businesses, as well as other headwinds such as fuel, bad debt, and lower equipment gains.” Rourke said that “Though we are feeling the effects of the current environment across the business, our performance is augmented by our platform diversity that we have strategically advanced over the past several years.” He said the company is actively onboarding new dedicated business within its truckload segment, and while this startup activity is accompanied by near-term friction costs, “we are pleased with the growth and contributions of this key component of our portfolio.” Dedicated, with the addition of M&M Transport this quarter, now comprises more than 60% of Schneider’s total truckload fleet, Rourke said. “In Intermodal, our complementary rail partnerships are providing synergistic and compelling service and transit times,” he added. “Our Logistics segment continues to drive new business into the Enterprise through both brokerage and Power Only services while effectively managing through challenging market conditions. As we navigate the late stages of the current freight cycle, we are preparing our business for the inevitable market recovery and advancing our strategic growth objectives for Dedicated, Intermodal, and Logistics.” Results of Operations (unaudited) The following table summarizes the company’s results of operations for the periods indicated. Enterprise Results Enterprise net income for the third quarter of 2023 was $35.6 million, a decrease of $90.2 million, or 72%, compared to the same quarter in 2022. The company recorded net gains on equity investments of $2.3 million compared to $25.9 million in the third quarter of 2022, which is reflected in Other expense (income) – net on the income statement. At September 30, 2023, the company had a total of $289.0 million outstanding on various debt instruments compared to $215.1 million as of December 31, 2022. The company had cash and cash equivalents of $58.5 million and $385.7 million as of September 30, 2023 and December 31, 2022, respectively. The company’s effective tax rate was 22.8% in the third quarter, compared to 25.0% in the same quarter of the prior year. In February 2023, the company announced the approval of a $150.0 million stock repurchase program. As of September 30, 2023, the company has repurchased $50.6 million under the program year to date. In July 2023, the company’s Board of Directors declared a $0.09 dividend payable to shareholders of record as of September 8, 2023. This dividend was paid on October 10, 2023. On October 30, 2023, the company’s Board of Directors declared a $0.09 dividend payable to shareholders of record as of December 8, 2023, expected to be paid on January 8, 2024. As of September 30, 2023, the company had returned $47.7 million in the form of dividends to shareholders year to date. Results of Operations – Reportable Segments Truckload Truckload revenues (excluding fuel surcharge) for the third quarter of 2023 were $535.3 million, a decrease of $35.9 million, or 6%, compared to the same quarter in 2022. Results were driven by unfavorable pricing in network, partially offset by the impact of organic dedicated growth and M&M Transport revenues. The impact of productivity improvements were more than offset by pricing declines in the quarter. Truckload revenue per truck per week was $3,909, a decrease of 6% compared to the same quarter in 2022. Revenue per truck per week in network decreased 16%, while revenue per truck per week in dedicated increased 2%, compared to the same quarter in 2022. Truckload income from operations was $24.5 million in the third quarter of 2023, a decrease of $58.7 million, or 71%, compared to the same quarter in 2022 due to lower price in network, higher fuel and other inflationary costs, bad debt, and friction costs related to dedicated new business implementations. Truckload operating ratio was 95.4% in the third quarter of 2023, compared to 85.4% in the third quarter of 2022. Intermodal Intermodal revenues (excluding fuel surcharge) for the third quarter of 2023 were $263.0 million, a decrease of $71.7 million, or 21%, compared to the same quarter in 2022 driven by lower revenue per order and volume, which decreased 16% and 9%, respectively, compared to the third quarter of 2022. Intermodal income from operations for the third quarter of 2023 was $11.1 million, a decrease of $20.0 million, or 64%, compared to the same quarter in 2022, due to negative pricing and volume pressures, partially offset by lower rail and dray-related costs. Intermodal operating ratio was 95.8% in the third quarter of 2023, compared to 90.7% in the third quarter of 2022. Logistics Logistics revenues (excluding fuel surcharge) for the third quarter of 2023 were $326.0 million, a decrease of $138.2 million, or 30%, compared to the same quarter in 2022 primarily due to decreased revenue per order, which continues to be unfavorably impacted by lower market prices, and lower brokerage volumes which decreased 11% year over year. Logistics income from operations for the third quarter of 2023 was $8.5 million, a decrease of $19.4 million, or 70%, compared to the same quarter in 2022 due to lower volumes and net revenue per order, and decreased port dray earnings. Logistics operating ratio was 97.4% in the third quarter of 2023, compared to 94.0% in the third quarter of 2022. Business Outlook “Our second half 2023 earnings are clearly challenged by ongoing pricing pressures, muted seasonality, and transitory cost items,” said Darrell Campbell, executive vice president and chief financial officer at Schneider. “We are intently focused on margin restoration particularly in our network businesses, which includes the proactive execution of pricing strategies and positioning our Enterprise for improving market conditions, which we expect to materialize in the first half of 2024. Our updated guidance for full year 2023 adjusted diluted EPS is $1.40 – $1.45 and for net capital expenditures is a range of $550 – $575 million, with a full year effective tax rate estimated at 24.5%.”    

TAMPA, Fla. — Supply chain management firm Transflo has announced a partnership with toll management company Bestpass that will enable “thousands of fleets and their professional drivers to further simplify in-cab and back-office operations through a comprehensive toll management platform,” a news release stated. “This partnership marks a robust enhancement to the ever-growing Transflo ecosystem of connected technologies.” The Bestpass Complete Pass system consolidates more than 50 tolling authorities across the United States into a single platform. This consolidation also covers state-by-state accounts, payment processes, reporting systems and in-cab devices, the news release notes. In addition to a single transponder, Bestpass ensures fleet plates are on file with relevant tolling authorities, avoiding future violations. And with on-demand toll reporting, Bestpass enables alerts to flag unauthorized use. “We’re thrilled to announce our partnership with Bestpass to streamline toll management for our customers,” said Justin King, chief product officer at Transflo. “With the Bestpass Complete Pass system, we’re offering seamless automated toll payments directly from the Transflo driver app. This enhances our commitment to reduce friction across the supply chain, making operations more efficient and cost-effective for over 65,000 fleets and more than 800,000 drivers.”

MIAMI — Ryder System Inc. has reported results for the three months ended Sept. 30. Ryder Chairman and CEO Robert Sanchez offered an overview of what the successful third quarter means for the company and its shareholders. “Our strong third quarter performance and increased 2023 guidance demonstrate the ongoing effectiveness of our balanced growth strategy despite a challenging freight environment,” he said. “ROE (return on equity) of 21% remained above our high-teens target and all three business segments achieved their pre-tax earnings targets during the quarter.” Sanchez added that “the transformative changes we’ve made to de-risk the business model, enhance returns and drive profitable growth are contributing to our significant outperformance versus prior cycles and are providing us with additional opportunities to increase shareholder value. Our recently announced agreement to acquire Impact Fulfillment Services supports our strategy to accelerate growth in our supply chain business. The transaction is set to add contract packaging and manufacturing capabilities that complement our existing suite of port-to-door logistics services, allowing us to expand with existing customers while adding new brands to our extensive customer base.” Sanchez also said the company’s enhanced asset management playbook is “leading to improved returns over the cycle.” “We reduced our tractor rental fleet by 18% year over year to align with lower market demand by redeploying vehicles into longer-term lease, dedicated and supply chain applications,” he added. “In addition, our expanded retail sales capacity has allowed us to sell a higher number of used vehicles through the retail channel and maximize proceeds.” Sanchez said that the company’s stronger earnings profile our a disciplined capital allocation provide ample capacity for organic growth, strategic acquisitions and returning capital to shareholders through share repurchases and dividends. “Our board recently authorized new discretionary and anti-dilutive share repurchase programs, as well as payment of our 189th consecutive quarterly dividend, demonstrating that returning capital to shareholders continues to be a key priority for us,” he noted. “We remain confident that our transformed business model is set to deliver a stronger, more resilient return profile while remaining well positioned to benefit from a cycle upturn.” Earnings and total revenue were reported as follows:           3Q 2023 Segment Review FMS total revenue and operating revenue decreased 6% and 3%, respectively. Total revenue reflects lower fuel revenue passed through to customers and lower operating revenue. Operating revenue reflects lower rental demand and 2% negative impact from UK exit, partially offset by higher ChoiceLease and SelectCare revenue. FMS EBT decreased to $169 million. Reflects lower used vehicle sales and rental results. Lower used vehicle gains due to a 30% and 31% decrease in used truck and tractor pricing, respectively, partially offset by higher volumes; sequentially from second quarter of 2023, used truck and tractor pricing decreased 6% and 8%, respectively. Rental power-fleet utilization was 75%, down from a record level of 83% in prior year on a 7% smaller average power fleet. FMS EBT as a percentage of FMS operating revenue is at the high end of the company’s long-term target of low double digits for the third quarter and above the target for the trailing 12-month period. Supply Chain Solutions: Higher Earnings Primarily Reflect Operating Revenue Growth SCS total revenue decreased 1% and operating revenue grew 9%. Decrease in total revenue primarily reflects lower subcontracted transportation passed through to customers, partially offset by higher operating revenue. Increase in operating revenue primarily driven by new business and increased pricing. SCS EBT grew 14%. Increase primarily due to higher operating revenue and lower incentive-based compensation costs, partially offset by lower volumes in the omnichannel retail vertical. SCS EBT as a percentage of SCS operating revenue is within the company’s long-term target of high single digits for the third quarter but below target for the trailing 12-month period. DTS total revenue decreased 1% and operating revenue grew 3% Total revenue reflects lower fuel revenue passed through to customers, largely offset by higher operating revenue Operating revenue increased primarily due to inflationary cost recovery DTS EBT is generally in line with prior year DTS EBT as a percentage of DTS operating revenue is within the company’s long-term target of high single digits for the third quarter and at the high end for the trailing 12-month period Corporate Financial Information Unallocated Central Support Services (CSS) Unallocated CSS costs declined to $20 million from $21 million in the prior year, primarily due to lower professional fees. Capital Expenditures, Cash Flow and Leverage Year-to-date capital expenditures increased to $2.6 billion in 2023, compared to $2.0 billion in 2022, reflecting higher investments in the lease fleet and accelerated timing of OEM deliveries, partially offset by lower investments in commercial rental. Year-to-date net cash provided by operating activities from continuing operations was $1.8 billion, consistent with the prior year, as lower working capital needs were offset by reduced earnings. Free cash flow (non-GAAP) of $32 million, compared to $887 million in 2022, primarily reflects an increase in capital expenditures and prior-year proceeds of approximately $300 million from the FMS UK exit. Debt-to-equity as of Sept. 30, 2023, was 214%, compared to 216% at year-end 2022, and remains below the company’s long-term target of 250% to 300%. Share Repurchase Programs In October, the Board of Directors authorized two new share repurchase programs. Under a new discretionary repurchase program, Ryder management is authorized to repurchase up to 2.0 million shares of common stock at its discretion. Under a new anti-dilutive repurchase program, Ryder management is authorized to repurchase up to 2.0 million shares of common stock issued to employees under the company’s employee stock plans since August 31, 2023. Both programs commenced Oct. 12, 2023, and expire Oct. 12, 2025. The company previously authorized discretionary repurchase program was completed in September, and the anti-dilutive repurchase program expired in October. Outlook “Our business model transformation is enabling us to achieve our earnings and return targets throughout the cycle,” said Ryder Chief Financial Officer John Diez. “Despite weakening freight conditions and used vehicle pricing that peaked over a year ago, we have demonstrated the ability to deliver strong results in a difficult environment. We remain confident that the continued execution of our balanced growth strategy will drive long-term value creation and shareholder returns.”

JACKSONVILLE, Fla. — Landstar System Inc. has announced that its basic and diluted earnings per share (EPS) totaled $1.71 on revenue of $1.289 billion during the third quarter this year, according to a news release. Last year, the company reported an EPS of $2.76 on revenue of $1.816 billion during the third quarter. “The soft freight market fundamentals experienced during the 2023 second quarter continued throughout the 2023 third quarter and made for challenging comparisons against our record 2022 third quarter performance,” said Landstar President and Chief Executive Officer Jim Gattoni. Gattoni continued, “Lackluster demand, driven by continued weakness in the U.S. manufacturing sector and the ongoing impact of an inflation-challenged consumer goods sector, plus the continuation of a loose truck capacity market drove Landstar’s truck revenue per load and volumes in the 2023 third quarter below prior-year levels. The number of loads hauled via truck declined 16% as compared to the 2022 third quarter, at the high end of the company’s guidance included as part of the company’s 2023 second-quarter earnings release on July 26, 2023, while truck revenue per load declined 12% as compared to the 2022 third quarter, at the low end of the company’s previously issued guidance.” Landstar’s gross profit was $128.1 million, and variable contribution was $187.4 million — both in the 2023 third quarter. In the previous year, the company’s gross profit was $185.7 million, and variable contribution was $245.7 million. $57.6 million and $58.3 million are the differences between 2022 and 2023 third-quarter results.  Trailing the 12-month return on average shareholders’ equity was 32%, and the return on invested capital, representing net income divided by the sum of average equity plus average debt, was 29%. The company is currently authorized to purchase up to 2,910,339 shares of company’s common stock under its previously announced share purchase programs. Landstar announced that its Board of Directors has declared a quarterly dividend of $0.33 per share payable on Dec. 1, 2023, to stockholders of record as of the close of business on Nov. 7, 2023. It is currently the intention of the Board to pay dividends on a quarterly basis going forward. “The company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $497 million as of Sept. 30, 2023,” Gattoni said. “Cash flow from operations was $304 million through the first three quarters of fiscal year 2023.” Truck transportation revenue hauled by independent business capacity owners (BCOs) and truck brokerage carriers in the 2023 third quarter was $1,173.8 million, or 91% of revenue, compared to $1,598.8 million, or 88% of revenue, in the 2022 third quarter. Truckload transportation revenue hauled via van equipment in the 2023 third quarter was $665.6 million, compared to $914.2 million in the 2022 third quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2023 third quarter was $378.1 million, compared to $453.9 million in the 2022 third quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2023 third quarter was $102.0 million, compared to $195.3 million in the 2022 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $88.9 million, or 7% of revenue, in the 2023 third quarter, compared to $191.9 million, or 11% of revenue, in the 2022 third quarter. “Through the first several weeks of October, the number of loads hauled via truck has trended below the historical, pre-pandemic end of third quarter to the beginning of fourth quarter sequential patterns, while truck revenue per load has thus far trended reasonably in line with these historical, pre-pandemic sequential patterns. As a reminder, the 2022 fourth quarter included 14 weeks of operations, while the 2023 fourth quarter will include 13 weeks,” Gattoni said. Gattoni added that “taking the extra week in 2022 into consideration and assuming a continuation of the October trends coupled with our expectation of a muted peak season, I expect revenue per load on loads hauled via truck to be in a range of 6% to 8% below the 2022 fourth quarter and the number of loads hauled via truck to be in a range of 20% to 22% below the 2022 fourth quarter. As such, I anticipate revenue for the 2023 fourth quarter to be in a range of $1.225 billion to $1.275 billion.” Gattoni said that based on the range of revenue estimated for the 2023 fourth quarter, “I would anticipate EPS to be in a range of $1.60 to $1.70. The anticipated range of EPS for the 2023 fourth quarter includes estimated insurance and claims costs of approximately 5.5% of BCO revenue. These costs were 5.6% of BCO revenue over the first nine months of 2023. The anticipated range of EPS for the 2023 fourth quarter also reflects an estimated effective income tax rate of 24.5%.”

PITTSBURGH — Aurora Innovation has announced its third quarter 2023 results. Aurora’s shareholder letter, including its financial results, is available on its investor relations website at ir.aurora.tech. “The third quarter was a period of intense focus on execution and capital discipline at Aurora,” said Chris Urmson, co-Founder and chief executive officer at Aurora. “Through these efforts, we are making strong progress toward closing our Safety Case, readying our hardware kit for commercial launch, and further improving the Aurora Driver’s performance in commercial settings. Alongside the maturing and scaling of our operations between Dallas and Houston, our teams are focused on preparing for an on-schedule commercial launch at the end of 2024.” The company will hosted a business review conference call on Nov. 1, along with a webcast, at ir.aurora.tech. A replay of the webcast will be available for 30 days following the call.

OKLAHOMA CITY — Love’s Travel Stops is now serving customers in Shreveport, Louisiana, and Herculaneum, Missouri, with two locations that opened on Nov. 2. The location in Shreveport, located off Interstate 49 at Exit 215 (5430 N. Market St.), adds 80 jobs and 109 truck parking spaces to Caddo Parish, a news release stated. The location in Herculaneum, located off Interstate 55 at Exit 178 (1199 McNutt St.), adds 55 jobs and 80 truck parking spaces to Jefferson County. “Love’s is excited to add two new locations across the nation’s highways to cater to customers in Shreveport and Herculaneum,” said Shane Wharton, president of Love’s. “These two locations will offer a diverse list of food choices, including Love’s brand-named snacks, fresh food options, restaurant concepts and more.” The locations are open 24/7 and offer bean-to-cup gourmet coffee, brand-name snacks and Love’s Mobile to Go Zone with today’s latest technologies. The locations also include: Shreveport More than 14,000 square feet. Carl’s Jr. (opening Nov. 6). 109 truck parking spaces. 66 car parking spaces. Three RV parking spaces. Seven diesel bays. Seven showers. Laundry facilities. CAT scale. Herculaneum More than 13,500 square feet. Arby’s (opening Nov. 6). 80 truck parking spaces. 55 car parking spaces. Five RV parking spaces. Eight diesel bays. Seven showers. Laundry facilities. CAT scale. In honor of the grand openings, Love’s will donate $2,000 split between Northwood High School and Green Oaks High School in Shreveport. Love’s will also donate $2,000 each to Jeffco Shop with a Cop and Kade’s Playground in Herculaneum.

STEVENSVILLE, Md. — Stertil-Koni officials said they have welcomed Optimized Distribution Partners (ODP) — a family-owned and operated automotive equipment distribution and service company located in Commerce City, Colorado — to their North American distributor network. “We know automotive equipment, with in-depth expertise in vehicle lifts, wheel service, shop equipment and heavy-duty service equipment,” an ODP news release stated. ODP is headed by Jeff Murray, president, and his brother, Tim Murray, vice president. ODP also has a Commercial Sales Specialist, Matt Elder, who will focus on the Stertil-Koni product line, the news release noted. In making the announcement, Stertil-Koni General Manager Scott Steinhardt said, “We are extremely pleased to welcome the ODP team to the Stertil-Koni network. What makes this partnership so special is that both companies have built their respective businesses by focusing on the delivery of world-class customer care, superior product selection, and an unwavering focus on safety.” Stertil-Koni President Dr. Jean DellAmore concluded: “ODP brings a deep, experienced team to the Colorado region for Stertil-Koni, and we are pleased to welcome them into our growing family of outstanding distributors.”