While fellow truckload carrier J.B. Hunt (NASDAQ: JBHT) has been expanding its last-mile delivery business, Schneider National (NYSE: SNDR) is going in the opposite direction. The company announced on August 1, 2019, that it is shutting down its First to Final Mile (FTFM) operation within its truckload division due to “operating performance of the FTFM business and the assessment that the long-term prospects of that business and its markets were not favorable.”
The announcement was made in a Securities and Exchange Commission 8-K filing in conjunction with the release of the company’s second quarter earnings results. The company will take total pre-tax restructuring charges of between $50 million and $70 million through the end of the year as a result, separate from a one-time goodwill impairment charge of $34.6 million recorded in the second quarter. The operation will be fully closed by December 31, 2019, the filing said.
“We have made the difficult decision to execute a structured shutdown of our FTFM service offering,” Mark Rourke, chief executive officer, said in a statement. “This decision followed a careful assessment of the near and longer-term prospects and alternatives. We believe this course of action allows us to fully focus on our services within truckload, intermodal, and logistics, is consistent with our portfolio management and capital allocation disciplines and is in the long-term best interest of our company and our stakeholders.”
www.freightwaves.com
The announcement was made in a Securities and Exchange Commission 8-K filing in conjunction with the release of the company’s second quarter earnings results. The company will take total pre-tax restructuring charges of between $50 million and $70 million through the end of the year as a result, separate from a one-time goodwill impairment charge of $34.6 million recorded in the second quarter. The operation will be fully closed by December 31, 2019, the filing said.
“We have made the difficult decision to execute a structured shutdown of our FTFM service offering,” Mark Rourke, chief executive officer, said in a statement. “This decision followed a careful assessment of the near and longer-term prospects and alternatives. We believe this course of action allows us to fully focus on our services within truckload, intermodal, and logistics, is consistent with our portfolio management and capital allocation disciplines and is in the long-term best interest of our company and our stakeholders.”
As losses mount, Schneider shutters First to Last Mile delivery business
Schneider is closing its First to Final Mile delivery operation due to poor performance.
www.freightwaves.com
