ArcBest First Quarter Loss Widens
ArcBest Corp.’s first quarter loss widened to $6.1 million, or 24 cents per share, hurt by rising costs and reduced revenue at its less-than-truckload unit and weaker results at its logistics business.
The company, which ranks No. 12 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, raised revenue 1% to $621.5 million, resulting from higher sales in the logistics unit. In the year earlier period, the loss was $5.9 million, or 23 cents, including one-time costs and earnings of $1 million, or 4 cents per share, when those costs are excluded.
“Ongoing economic weakness continued to impact our business,” CEO Judy McReynolds said in a statement.
At the LTL unit, revenue fell less than 1% to $439.5 million. Costs were inflated due to higher-than-normal injury and accident expense.
Revenue per 100 pounds of freight fell 1.2% reflecting lower surcharges. Other publicly traded LTL competitors that have reported first quarter earnings said revenue per hundredweight increased in the quarter.
Shipments rose 4% and tonnage rose 0.7%.
The operating ratio was 102.1, 2.1 percentage points worse than the prior-year period, resulting in a loss before interest and taxes of $9.0 million.
“We are encouraged by the ongoing stability in LTL prices,” she said.
The logistics unit, where revenue now accounts for 31% of the corporate total, produced $1.15 million in profit before interest and taxes. Excess spot market capacity and a customer shift in equipment needs hurt the logistics results.
Within the logistics unit, profitability declined about 80% in premium logistics, more than 10% in brokerage and maintenance businesses. The household goods unit’s loss widened.
