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Trimble flags freight demand easing as transportation revenue rises 5%
Trimble’s transportation and logistics unit posted $141 million in second-quarter revenue and 7% growth in annualized recurring revenue to $533 million.
Trimble said it is starting to see signs that the freight downturn may be easing, citing improving market conditions alongside stronger results in its transportation and logistics segment, according to Yahoo Finance. The company reported that the segment generated $141 million in second-quarter revenue, up 5% organically year over year. Annualized recurring revenue rose 7% to $533 million, and segment operating margin reached 24%, up 240 basis points from a year earlier. CEO Rob Painter pointed to rising spot rates and higher tender rejection rates as indicators that freight supply and demand are beginning to rebalance. Trimble also reported what Painter characterized as healthy quarterly bookings in transportation and logistics, supporting expectations for midterm growth. In addition, Trimble disclosed that it has received unsolicited, credible inbound interest from multiple parties in its transportation and logistics business, leading its board and management to launch a strategic review of the unit. The company also said Transporeon, its cloud-based transportation management platform, grew in the mid-teens during the quarter.