Werner Enterprises

Dedicated & Logistics
Omaha, NE
NASDAQ: WERN (Werner Enterprises, Inc.)
Greg Werner, President & CEO
800-228-2240
www.werner.com

3PL Turnover:

$1b
Parent: $2.2b

Service Area:

North America, China

3PL Assets:

4,250 employees
11 terminals
7,500 tractors, 24,940 trailers

Information Systems:

Excellent
TMS – Proprietary – SMART

Services:

Dedicated contract carriage, IMC, brokerage, value-added transportation management, freight forwarding, cross-docks

Industry Focus/Key Customers:

Building materials, chemicals, consumer goods, food and beverage, retail
Key Customers: Anheuser-Busch, Chevron, Dollar General, Home Depot, Knauf Insulation, Kroy Building Products, OfficeMax, PepsiCo, Perdue Farms, Procter & Gamble, Target

Armstrong & Associates’ Evaluation:

Werner is a major dedicated contract carrier and U.S. trucking company with growing non-asset-based domestic and international transportation management operations. Werner Enterprises has invested sizably in its non-asset-based 3PL operations, Werner Global Logistics (WGL) and Value Added Services (VAS), to expand beyond its core North American trucking operations. Werner Global Logistics (WGL) is a licensed U.S. NVOCC, U.S. Customs Broker, TSA-approved Indirect Air Carrier, ITAR Certified Air Carrier and IATA Accredited Cargo Agent. Werner Global Logistics (Shanghai) Co. Ltd. is a licensed freight forwarder and NVOCC in China and a logistics, consulting, warehousing, consolidation and ground transport operator throughout China. Werner Global Logistics Mexico provides freight forwarding and NVOCC services to Werner Enterprises’ customers in Mexico. VAS consists of brokerage, freight management services and intermodal. VAS and WGL have grown to over $450 million in annual freight under management. When adjusted for accounting revenues, combined gross revenues for 2008 were $265 million and now account for 13% of Werner Enterprises’ total revenues. Total operating income for the non-asset logistics services operations was $14.6 million in 2008, which equates to 12.9% of Werner Enterprises’ total operating income. Werner Enterprises’ Dedicated services operations have grown at over 33% annually. With 2008 revenues of $735 million, Dedicated services accounts for 37% of Werner Enterprises’ revenues and approximately 42% of its total truck fleet with 3,150 tractors. Dedicated services’ largest customer is Dollar General. Other major Dedicated services accounts include: Anheuser-Busch, ConAgra Foods, Family Dollar, Home Depot, Kraft, OfficeMax, P&G, Sears, Staples and Wal-Mart. Dedicated services manages over 120 individual customer fleets ranging from one to 100+ tractors. About 70% of the fleets are managed onsite at customer locations and about 30% of the smaller fleets are managed from Werner Enterprises’ operations center in Omaha.