Universal Logistics Holdings, Inc. (NASDAQ:ULH) Q2 2023 Earnings Call Transcript

Matthew Milask: Okay. Yes, that makes a lot of sense. And lastly, I know that you mentioned your expectation for destocking to really run its course over the next couple of quarters here. Generally, are you hearing any sort of material differences from your industrial customer base here? And maybe how far behind that sector might be from the consumer side with respect to destocking?

Tim Phillips: Well, that’s a good question. If I had to pinpoint from an industrial standpoint, I mentioned on our open deck type movements, there’s definitely been a decline in the movement of industrial equipment. Steel has remained somewhat resilient, but still down mid-single digits. So I see somewhat of a restriction going in raw materials for whatever production purpose and process that would be for. Same thing could be said from — we deal with a couple of large industrial customers on the Intermodal side and their import volumes, material that they use in the production process is down at least 20%, maybe 30%.

Matthew Milask: Got it will jump back in the queue. Thanks a lot.

Tim Phillips: You’re welcome.

Operator: [Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to Tim Phillips for any closing remarks.

Tim Phillips: Thanks, Drew. First off, I appreciate everyone taking the time to listen this morning. I remain confident in our continued growth in the contract logistics segment of our business. And while the Transportation segment has faced many headwinds, I’m optimistic that the hard work that is being done will have us well positioned when freight volumes begin to increase. I look forward to updating you on progress during our Q3 earnings call slated for late October. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.