Green Bay WI — Schneider National, Inc. announced results for the quarter and six months ended June 30, 2019, as well as the shutdown of its First to Final Mile (FTFM) service offering.
“Compared to second quarter of 2018, operating earnings were negatively impacted by FTFM, and by muted seasonality in 2019, which affected all operations,” commented Mark Rourke, CEO of Schneider. “As we look to the second half of the year, we expect industry capacity levels to rationalize given the challenges of the current operating environment. Our focus will be to improve our asset utilization and our overall cost position across our Truckload and Intermodal platforms.
“We have made the difficult decision to execute a structured shutdown of our FTFM service offering,” Rourke continued. “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.”
“The Schneider associates involved with FTFM have invested a tremendous amount of energy and creativity toward this endeavor over the past three years, and we want to express our gratitude for their efforts,” said Rourke. “We are looking at all opportunities to redeploy our affected associates based on role, geography, and business need.”
The FTFM offering primarily services business-to-business and business-to-consumer movements for product categories such as furniture, carpet, and appliances. The network, comprised of 26 terminal locations providing nationwide service, will shut down operations over the next several weeks. In support of FTFM customers, freight already in transit will be promptly delivered. Refer to Form 8-K that was filed today which includes further financial information associated with the pending FTFM closure.