ArcBest Third-Quarter Net Income Slips 2.4%
ArcBest Corp.'s net income fell 2.4% to $19.2 million, or 72 cents per share, despite improved results at most businesses.
ArcBest’s results were hurt by non-operating costs that wiped out a 1% increase in operating income, which excludes interest and taxes.
At ABF Freight, operating income improved about 7% to $27.1 million. Revenue per 100 pounds of freight rose 0.5%, including fuel surcharge, while shipment count increased and tonnage fell 2.5%.
The less-than-truckload carrier’s operating rato was 94.7.
“While softer freight demand amid an increasingly sluggish economy impacted our third-quarter results, revenue growth in our asset-light logistics businesses confirms that our customers find value in our expanded supply chain, moving and fleet maintenance offerings,” ArcBest CEO Judy McReynolds said. “ABF Logistics, ABF Moving and FleetNet America all produced double-digit increases in revenue, and ABF Freight generated a solid improvement in its operating ratio through better use of resources.”
In the non-asset-based business, results improved at the maintenance, moving and freight management businesses, which together produced operating income of about $12 million, far ahead of the $2.5 million in the 2014 period.
Panther Premium Logistics was hurt by weaker market conditions and produced operating income that was little changed.
Non-asset-based revenue rose to $211.1 million, a 6% increase.
The results from ArcBest, which ranks No. 12 on the Transport Topics Top list of the largest U.S. and Canadian for-hire carriers, followed announcements by other LTL operators earlier in the week.
No. 4 YRC Worldwide raised net income to $19.8 million from $1.2 million despite a drop of about 6% in revenue, producing a 96.2 operating ratio.
Old Dominion Freight Line boosted net income 8.3% to $84.4 million, helped by a 5% revenue increase. Its operating ratio was 82.1.
For Saia Inc., the third quarter delivered a decline of more than 20% in net income to $11.8 million as revenue declined and costs rose for wages and claims. Its operating rato was 93.7.
