With Knight Transportation and Swift Transportation announcing a $5 billion merger earlier in April, there might be another one on the horizon. And an analyst says that Werner might be one of the companies involved.
“The big guys are wanting to get bigger,” Transportation Industry Analyst Jason Seidl told the Omaha World-Herald. “Companies like Werner might start looking at what is available out there. Mergers are a possibility anytime you have two willing dance partners.”
According to the report, Werner was scheduled to report first quarter earnings last week that were forecasted at 20 cents per share, dropping from 28 cents per share the previous year. That’s a decline of approximately 29 percent.
The report also cites competition from the Knight Transportation and Swift Transportation merger. For comparison, Knight-Swift Transportation Holdings will have 23,000 tractors, as Livetrucking.com reported. Werner has approximately 7,000 trucks, according to the Omaha World-Herald.
In addition, it mentions other reasons major trucking companies like Werner might consider merging such as an increasing amount of goods being shipped shorter distances.
The Omaha World-Herald explains that Werner “isn’t saying much” about its future. That said, Chief Executive Derek Leathers mentioned the Knight-Swift merger, telling the Omaha World-Herald in a statement that it would likely bring “challenges and complexities.”
For now there does not appear to be a definite merger forthcoming, however Seidl believes it’s only be a matter of time until Werner combines forces to create another mega-trucking firm.