EXHIBIT 99.1
WERNER ENTERPRISES, INC.
14507 Frontier Road
P. O. Box 45308
Omaha, Nebraska 68145
FOR IMMEDIATE RELEASE Contact: Robert E. Synowicki, Jr.
- --------------------- Executive Vice President and
Chief Information Officer
(402) 894-3000
John J. Steele
Executive Vice President, Treasurer
and Chief Financial Officer
(402) 894-3036
WERNER ENTERPRISES PROVIDES UPDATE ON THE IMPACT OF HIGH DIESEL FUEL
PRICES ON THIRD QUARTER 2005 EARNINGS
Omaha, Nebraska, September 20, 2005:
- -----------------------------------
Werner Enterprises, Inc. (Nasdaq: WERN-news), one of the nation's
largest truckload transportation companies, announced today that high
diesel fuel prices are affecting third quarter 2005 earnings. Although
the Company continues its long-standing policy of not commenting on
analyst's quarterly and annual earnings estimates, with this news
release management is updating its previous disclosures regarding the
impact of high diesel fuel prices.
In the Company's second quarter 2005 earnings release of July 18,
2005 and in the Company's second quarter 2005 Form 10-Q filed with the
Securities and Exchange Commission on August 2, 2005, management stated
"Assuming fuel prices remain at price levels at the date of this filing
throughout the remainder of third quarter 2005, the negative impact of
fuel expense on earnings for third quarter 2005 compared to third
quarter 2004 is estimated to be in the range of approximately two cents
to three cents per share. If fuel prices average ten cents per gallon
higher than current price levels throughout the remainder of third
quarter 2005, the negative impact of fuel expense on earnings for third
quarter 2005 compared to third quarter 2004 is estimated to be in the
range of three cents to four cents per share."
During the month of August 2005, diesel fuel prices rose about 25
cents a gallon. Diesel fuel prices rose an additional 35 cents a gallon
in the four days following the landfall of Hurricane Katrina on August
29, 2005. While prices slowly decreased to pre-hurricane price levels
over the next two weeks, diesel fuel prices rose again by 18 cents a
gallon this morning due primarily to new weather concerns in the
southeastern United States. Diesel fuel prices to date in third quarter
2005 are 64 cents a gallon, or 51%, higher than third quarter 2004.
This morning's diesel fuel price is 80 cents a gallon, or 58%, higher
than this date a year ago.
Assuming diesel fuel prices remain at today's price levels for the
remaining ten days of third quarter 2005, the negative impact of fuel
expense on earnings for third quarter 2005 compared to third quarter
2004 is estimated to be six cents to seven cents per share.
In addition, it is difficult to quantify the short-term impact of
rapidly rising prices, such as the month of September 2005. Most of the
Company's fuel surcharge programs with its customers adjust once a week
based on the Department of Energy (DOE) national survey price per gallon
that is reported each Monday afternoon. For example, yesterday's DOE
national survey price per gallon declined by 12 cents a gallon compared
to the previous Monday, which accordingly reduced this week's fuel
surcharge rate. However, since diesel fuel prices rose 18 cents a
gallon this morning, the Company is paying substantially higher fuel
prices this week that are not being recovered in this week's fuel
surcharge rate. The difference between the change in this week's DOE
national survey price compared to this morning's change in the diesel
fuel price is 30 cents per gallon. Assuming the Company bills one-cent
per mile of fuel surcharge for each five-cent change in the price per
gallon, this results in a six-cent per mile fuel surcharge revenue
shortfall. As a result of the short-term impact of rapidly rising fuel
prices in September 2005 that are difficult to quantify, the negative
impact of fuel on earnings for third quarter 2005 to third quarter 2004
could be higher than the amounts shown in the preceding paragraph.
The Company has fuel surcharge programs in place with its customers
that have historically enabled the Company to recoup approximately 80%
of higher fuel prices. However, when diesel fuel prices rise rapidly in
a short period of time, the Company's fuel surcharge recovery percentage
is temporarily lower. The remainder of the cost increase absorbed by
the Company is due to the impact of empty miles not billable to the
customer, out-of-route miles, and truck idle time.
Werner Enterprises is a full-service transportation company
providing truckload and logistics services throughout the 48 states,
portions of Canada and Mexico. C.L. Werner founded the Company in 1956.
Werner is one of the nation's largest truckload transportation companies
with a fleet of 8,750 trucks and 24,090 trailers as of June 30, 2005.
Werner Enterprises' common stock is traded on The Nasdaq Stock
Market under the symbol WERN. The Werner website address is
www.werner.com.
Note: This press release contains forward-looking statements,
which are based on information currently available. Actual results
could differ materially from those anticipated as a result of a number
of factors, including, but not limited to, those discussed in Item 7 of
the Company's Annual Report on Form 10-K for the year ended December 31,
2004. The Company assumes no obligation to update any forward-looking
statement to the extent it becomes aware that it will not be achieved
for any reason.