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WARREN, Mich. – Universal Logistics (NASDAQ:ULH) Holdings, Inc. (NASDAQ: ULH) has expanded its intermodal service capabilities with the launch of a new terminal in the Tacoma, WA region, now fully operational. The facility includes a secured container yard spanning 2.5 acres, offering 24/7 drayage services to meet the demands of its customer base.
Strategically located to provide efficient access to Northwest Seaport Alliance South Harbor Terminals and major highways, the terminal is positioned to serve key industrial areas in the region, such as Sumner/Kent, Puyallup/Spanaway, and Olympia/Lacey. This site selection is aimed at optimizing operations and shortening transit times for Universal's clients.
John Wroby, President of Universal Intermodal Services, highlighted the terminal's potential to enhance service efficiency due to its proximity to crucial industrial zones and transportation routes. In line with the terminal's opening, Universal is actively recruiting owner operators and dispatch office personnel to join the team at the new location.
Universal Logistics Holdings, a company that provides customized transportation and logistics solutions in the United States as well as in Mexico, Canada, and Colombia, operates through subsidiaries offering a wide range of services. These services include truckload, brokerage, intermodal, dedicated, and value-added services.
The company's forward-looking statements in the press release suggest anticipated growth and operational forecasts, which are inherently subject to market risks and uncertainties. Universal Logistics Holdings has stated it will not update forward-looking statements unless required by securities laws.
The information reported here is based on a press release statement, and further details about Universal and its services can be found on the company's website.
In other recent news, Universal Logistics Holdings reported considerable growth in its Q2 2024 financial performance, with a 12% increase in revenue and a 30% rise in earnings per share year-over-year. The company's contract logistics segment saw a significant 26.2% revenue increase. Universal Logistics also announced the acquisition of Parsec, a terminal management services provider, a deal valued at $193.6 million that is set to enhance Universal's contract logistics segment.
The company has decided to shut down its subsidiary, Universal Capacity Solutions, a freight brokerage unit, as part of a strategic decision to focus on core priorities. The shutdown will incur pre-tax charges between $6.0 million and $7.0 million. Meanwhile, Universal Logistics has entered into a significant sublease agreement with Ford Motor Company (NYSE:F), planning to construct a 1,000,000 square foot warehouse and distribution center to support Ford's upcoming electric truck production.
Looking ahead, Universal Logistics projects Q3 revenues between $450 million and $475 million, with operating margins ranging from 9% to 11%. The Dedicated Transportation businesses increased income from operations to $52.9 million, and the specialty development contract logistics program is expected to generate approximately $228 million by year-end 2024. These are the recent developments in Universal Logistics Holdings.
InvestingPro Insights
Universal Logistics Holdings' (ULH) expansion into the Tacoma region with its new intermodal terminal aligns well with the company's strong financial performance and market position. According to InvestingPro data, ULH has a market capitalization of $1.13 billion and has demonstrated impressive profitability with a P/E ratio of 8.9, significantly lower than many industry peers.
The company's strategic move to enhance its intermodal services comes on the heels of robust financial results. ULH reported a revenue of $1.77 billion in the last twelve months as of Q2 2024, with a healthy gross profit margin of 22.87%. This financial strength supports the company's expansion efforts and potential for continued growth.
InvestingPro Tips highlight that ULH has maintained dividend payments for 14 consecutive years, showcasing its commitment to shareholder returns. This is particularly noteworthy given the company's expansion initiatives. Additionally, ULH has delivered a high return over the last year, with a remarkable 75.15% price total return over the past 12 months.
The new terminal's focus on efficiency and strategic location aligns with ULH's strong operating performance. The company boasts an operating income margin of 11.69%, indicating effective cost management and operational efficiency.
Investors considering ULH's potential might be interested to know that InvestingPro offers 6 additional tips for this stock, providing a more comprehensive analysis for those looking to delve deeper into the company's prospects.
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