Sept 10 (Reuters) - Trucking and logistics company Werner Enterprises Inc (WERN.O) said it expects its logistics business to contribute a third of its revenue in the next three to five years, as the company plans to balance its revenue mix.
“We expect to shift our revenue mix to less one-way truckload, more dedicated, and more asset-light logistics, as we move forward,” Chief Finance Officer John Steele said in an analyst presentation.
Werner operates three businesses - logistics, which currently contributes 21 percent of total revenue; dedicated, with a 40 percent share; and one-way truckload with 39 percent. It now expects all the three segments to contribute equally in the next three to five years.
One-way truckload includes regional fleets and medium- and long-haul vans. Werner’s dedicated unit provides equipment exclusively to specific customers.
“We expect our greatest growth to come from logistics and cross-border services,” Steele said.
The company, which expects pricing to bottom in the third quarter, does not plan to add trucks to its one-way truckload business, Steele said.
Over the past two and a half years, Werner has reduced its medium-to-long haul fleet by about two-third to 1,000 trucks.
“Our primary focus is to improve rates and return on assets in the one-way market, with greater emphasis on the high-service regional and expedited market,” Steele said.
Shares of Werner were up 9 cents at $18.13 Thursday morning on Nasdaq. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Unnikrishnan Nair)