Cowan Systems Acquisition
Schneider completed the acquisition of Cowan Systems for $421 million, significantly expanding its dedicated truckload fleet. The acquisition is expected to bring $20 million to $30 million in annual synergies after year one.
Intermodal Segment Performance
Intermodal segment saw a 6% increase in revenue year-over-year, with volume growth and higher revenue per order. Operating income increased by $11 million, and the operating ratio improved to 93.8%.
Logistics Segment Profitability
Despite a 5% decrease in revenue, the Logistics segment achieved a 40% increase in operating income year-over-year due to effective net revenue management.
Safety Improvements
Schneider achieved significant reductions in DOT reportable accidents, reaching an all-time low accident frequency, displaying strong safety performance.
Return to Freight Market Seasonality
The fourth quarter showed signs of returning seasonality in the freight market, with solid retail and consumer product-driven volumes.