MONDOVI, WI – Marten Transport, Ltd. (Nasdaq/GS:MRTN) released its financial results for the third quarter ending September 30, 2023. The company reported a net income of $13.6 million, equivalent to 17 cents per diluted share, a noticeable decline from the third quarter of 2022, where net income stood at $25.6 million, or 32 cents per diluted share.
For the nine-month period concluding on September 30, 2023, Marten Transport reported a net income of $58.0 million, equivalent to 71 cents per diluted share, in contrast to the previous year’s figure of $84.8 million, or $1.03 per diluted share.
Operating revenue for the third quarter of 2023 was $279.5 million, down from the $324.4 million recorded in the third quarter of 2022. Excluding fuel surcharges, operating revenue amounted to $239.1 million in the third quarter of 2023, as opposed to $269.3 million in the same period the previous year. Fuel surcharge revenue also decreased to $40.5 million in the third quarter of 2023, compared to $55.1 million in the third quarter of 2022.
Operating income was $17.2 million for the third quarter of 2023, a significant drop from the $33.8 million recorded in the third quarter of 2022. For the first nine months of 2023, operating income amounted to $74.5 million, compared to $110.6 million for the first nine months of 2022.
Randolph L. Marten, the Executive Chairman, commented on the challenging quarter, stating, “Our earnings this quarter were significantly pressured by the industry-wide weak demand, cumulative impact of reduced freight rates with the resulting freight network disruption, and inflationary operating costs within the current freight market recession. Additionally, the record heat and rising fuel prices each month of the third quarter led to an increase in our mile-adjusted net fuel expense of $3.9 million, or 4 cents per diluted share, from this year’s second quarter to third quarter.”
He further added, “We are focused on both minimizing the current freight market’s impact on our operations, and investing in and positioning our premium service solutions to capitalize on profitable organic growth opportunities as the market necessarily recovers – with fair compensation for our services. To that end, we have not agreed to any rate reductions since early August.”