Shares of Schneider National dropped 8% due to a weak earnings report, with third-quarter adjusted EPS of 12 cents missing estimates by 8 cents. The company lowered its full-year guidance to around 70 cents, down from 75-95 cents. Revenue rose 10% to $1.45 billion, driven by the acquisition of Cowan Systems.

Schneider’s truckload unit revenue increased by 17% year over year to $625 million. The dedicated fleet saw a 26% increase in revenue, offset by a 2% decline in revenue per truck per week. Network revenue was up 1% due to modest fleet growth. The company is shifting to the spot market due to low contractual rate increases.

Schneider’s TL unit reported a 96.8% adjusted operating ratio, worse year over year and sequentially. Excess insurance costs were mainly incurred by this segment. The company plans to reduce costs further, with a 6% decrease in non-driver employee count. Intermodal revenue increased by 6% year over year.

Logistics revenue grew by 6% year over year, but margins fell 50 basis points to 98.1%. The company is focusing on fleet utilization initiatives, aiming to add to the $40 million in cost savings previously outlined. Schneider remains committed to improving its financial performance amid challenging market conditions.

Read more at Yahoo Finance: Schneider’s tough Q3 unlikely remembered if TL capacity resets