ArcBest Sees Profit, Revenue Declines in Q4 2024
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ArcBest Corp. posted declines in profit and revenue for the fourth quarter of 2024, according to a Jan. 31 earnings release.
The Fort Smith, Ark.-based logistics company posted net income of $29 million, or $1.24 a diluted share, for the three months ending Dec. 31. That compared with $48.8 million, or $2.01, during the same time the previous year. Total revenue decreased 8.1% to $1 billion from $1.09 billion.
“Throughout 2024, we made significant progress on controlling costs, improving productivity and enhancing our service quality,” ArcBest CEO Judy McReynolds said. “These achievements underscore our commitment to excellent execution and are yielding tangible results. I want to extend a heartfelt thank you to our dedicated employees, whose hard work and innovation have been pivotal in reaching these milestones. Together, we are well-positioned for continued growth and success.”
For the full year, ArcBest reported net income of $174 million, or $7.28 a share, on revenue of $4.18 billion, compared with net income of $195.4 million, or $5.77, on revenue of $4.43 billion in 2023.
During Q4, asset-based segment revenue decreased 7.6% to $656.2 million from $710 million during the previous year. The segment experienced tonnage declines that were driven by decreases in daily shipments and weight per shipment. The report noted that prolonged manufacturing sector weakness continues to negatively impact weight per shipment metrics. But ArcBest said productivity improvements and cost initiatives helped mitigate the impact of the soft market, higher insurance costs and higher labor costs related to an annual union contract rate increase. Operating income in the segment decreased 40% to $52.3 million from $87.5 million.
Asset-light segment revenue decreased 9.2% to $375.4 million from $413.4 million the prior year. A weak freight environment and excess truckload capacity impacted results, as did lower revenue per shipment thanks to softer rates and a higher mix of managed transportation, ArcBest said. However, the segment continues to benefit from productivity initiatives, as shipments per employee per day keep improving. The segment reported a narrowed operating loss of $1.6 million, compared with a loss of $7.7 million the prior year.
ArcBest ranks No. 12 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 40 on the TT Top 100 logistics companies list.
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