Forward Air, Marten Earnings Rise, But Profit Slips at Swift
Earnings fell 16% to $31.9 million, or 23 cents per share at Swift, and Marten profits rose 2% to $8.2 million, or 25 cents per share, excluding a one-time gain from an asset sale in last year’s first quarter.
Forward Air net income rose to $13.1 million, or 43 cents, from $12.1 million in the prior-year period, when acquisition-related costs last year are excluded.
Swift, the No. 6 company on Transport Topics Top 100 list of for-hire Carriers in the United States and Canada, said in a statement, “A weaker-than-expected freight market could not offset the driver wage and owner-operator pay increases implemented in May of 2015 and a less favorable year-over-year fuel environment.”
Revenue at Phoenix-based Swift dipped 4% to $967.8 million. On an adjusted basis, Swift earnings were 25 cents, down from 29 cents.
Dry van truckload profit before interest and taxes fell more than 35% to $36.3 million as revenue fell 8% to $492.5 million. Results at the dedicated unit improved, with operating profit up more than 60% to $23.9 million. Refrigerated swung to a $332,000 loss from a $4.8 million profit, and the operating loss more than doubled at the intermodal unit.
After a 1.5% drop in first-quarter loaded miles, Swift has decided to shrink its average truck count by 200 units during the second quarter.
Forward Air raised revenue 12% to $229.5 million, which included results from the Towne Air acquisition during 2015. Results were helped by expedited less-than-truckload and truckload freight for intermodal customers.
When acquisition costs were included in the earnings of No. 34 Forward Air, based in Greeneville, Tennessee, net income was $4.8 million in the 2015 first quarter.
No. 48 Marten raised revenue less than 1% to $161.9 million. Like Swift, dedicated business showed growth, including revenue nearly 70% higher at $37.1 million and profit before interest and taxes that more than doubled. However, truckload revenue slumped 11% to $90.1 million and profitability fell 28%. Revenue slipped 15% for Marten’s truck-rail business and was little changed in brokerage. Intermodal and brokerage profit improved.
North American carrier TransForce Inc., No. 9 on the for-hire TT100, reported net income of C$15.3 million ($11.2 million) from continuing operations, an 18% increase that resulted from better results at its Canadian package and less-than-truckload businesses.
Revenue for the Montreal-based company was 3% lower at C$934.2 million.
Earnings totaled C$503 million, including the proceeds of a sale of its waste management segment. Those proceeds were used to repay debt and buy back stock.
TransForce's statement described the quarterly results as “mixed,” particularly noting a weak Canadian economy that hurt results. Profit before interest and taxes declined 8% to C$40.3 million. LTL profit on that basis rose 40% to C$4.2 million, and package unit results improved 22%. Truckload profitability dropped 20%, and logistics results worsened by 25%. Margins fell in the truckload and logistics businesses.
The company also announced its U.S. trucking activities related to oil field exploration have been halted.
