Feb. 4 Earnings Roundup: ArcBest, Con-way, Forward Air, Hub Group, Roadrunner, Wabash, XPO
Four more trucking businesses reported fourth-quarter results, including earnings that more than doubled at Con-way Inc., and increases of 41% at ArcBest Corp. and 10% at Roadrunner Transportation Systems.
Earnings slipped less than 1% at Hub Group Inc. In addition, Forward Air Corp. pre-announced higher earnings and a $125 million acquisition, and XPO Logistics also issued a forecast. Trailer maker Wabash National Corp.’s profit also rose, powered by a record year in that industry.
Con-way, which ranks No. 4 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, posted net income of $24.9 million, or 43 cents per share, compared with $11.7 million, or 20 cents, a year earlier. A $1.6 million tax benefit helped 2014 results, and a $9.7 million tax cost hurt year-earlier earnings.
“Con-way Freight achieved growth in revenue and significantly higher operating income … on the strength of ongoing revenue-management efforts bolstered by a stable demand and pricing environment,” CEO Douglas Stotlar said in a statement.
Con-way Freight profit before interest and taxes rose 55%, and earnings also rose at the truckload and Menlo Logistics units.
No. 8 Hub Group’s net income slipped 1% to $16.4 million, or 45 cents per share, from $16.5 million. The results were aided by a 4-cents-per-share tax benefit.
Profit excluding taxes and interest fell 16% at the unit that includes intermodal and rose 22% at the smaller Mode unit that specializes in brokerage. Revenue increased 3% to $915.4 million.
ArcBest reported net income of $14.5 million, or 53 cents per share, reflecting improved results at the ABF Freight and non-asset-based businesses.
Revenue increased 15% to $664.8 million, including 25% growth at the unit that includes logistics, brokerage and moving services. Net income in the 2013 quarter was $10.3 million, or 38 cents per share, including one-time items.
ABF Freight, the less-than-truckload unit, improved income before interest and taxes by nearly half to $14.7 million. Revenue rose to $485.9 million.
The non-asset-based businesses raised profit before interest and taxes by 15% to $5.6 million, trailing the improvement pace earlier in 2014 at ArcBest, which ranks No. 13.
“We made significant progress this year getting ABF Freight on a firmer path toward sustained, historical profitability,” ArcBest CEO Judy McReynolds in a statement.
Roadrunner’s net income rose to $32.4 million, or 32 cents per share with help from 71% higher truckload profit.
Revenue, reflecting multiple acquisitions, rose 45% to $532.1 million. Year-earlier earnings were $11.2 million or 29 cents per share.
The truckload unit at No. 21 Roadrunner raised profit before interest and taxes to $19.7 million as revenue climbed 73% to $311.5 million.
Higher LTL costs shaved profit on that basis to $2.8 million from $5.2 million despite 4% higher revenue of $140.9 million.
No. 46 Forward Air Corp. said earnings ranged from 54 cents to 56 cents per share in the quarter, about 10% higher than the 2013 period.
Forward Air also said it agreed to buy trucking operator CLP Towne.
XPO Logistics, which ranks No. 12 on TT’s Top 50 list of the largest logistics companies in the United States, Canada and Mexico, said it has achieved an annual revenue pace of at least $3 billion annually, and earnings before interest, taxes, depreciation and amortization, or EBITDA, on that basis of $150 million or more.
For the quarter, XPO has forecast $825 million to $835 million in revenue. Net revenue could be as much as $305 million and EBITDA of $39 million to $42 million.
Wabash National Corp. raised net income 80% to $19.1 million or 28 cents per share.
Revenue rose 15% to $527 million, buoyed by surging trailer orders that hit record levels last year.
Year-earlier period net income was $10.4 million, or 15 cents. Trailer shipments increased 18% to 15,750.
