ODFL Profit Jumps 26.5%, ArcBest Triples
July 31, 2014
Less-than-truckload carrier, Old Dominion Freight Line, posted a 19.1% increase in its second quarter revenue while profit gained by a wider margin.
Revenue totaled $703.0 million compared to $590.3 million for the second quarter of 2013 while net income grew 26.8% to $73.8 million for the second quarter of 2014 from $58.3 million for the second quarter of 2013.
Earnings per diluted share increased 26.5% to 86 cents for the second quarter of 2014 from 68 cents for the prior-year period for the North Carolina-based company
“Old Dominion’s growth accelerated in the second quarter, driving record results for our quarterly revenue, tonnage and earnings,” said David S. Congdon, president and CEO. “In addition, we improved our operating ratio by 100 basis points over the prior-year period to 82.5%, which is the best quarterly operating ratio in our company’s history.
He said the improvement in ODFL’s operating ratio for the second quarter and first half of 2014 was primarily attributable to increases in its freight density and yield.
“Our LTL tonnage increased 14.9% for the second quarter, driven by increases in LTL shipments of 12% and LTL weight per shipment of 2.6%," Congdon said. "LTL revenue per hundredweight for the second quarter increased 3.7%, or 3.6% excluding fuel surcharges, despite the impact of our increased weight per shipment and a 1.4% decline in our average length of haul."
You can find more details on the ODFL website.
Less than truckload, expedited and logistics company ArcBest has reported improved second quarter 2014 results reflecting stronger performances at its two largest operating companies, ABF Freight and Panther Premium Logistics.
Photo: Evan Lockridge
Second quarter revenue was $658.6 million compared to revenue of $576.9 million in the second quarter of 2013, an increase of 14%. Net income was $17.2 million and 63 cents per share compared to second quarter 2013 net income of $4.9 million, or 18 per share. On a per share basis, this represents ArcBest’s most profitable quarter in six years, according to the Arkansas-based company.
At less-than-truckload ABF Freight, second quarter revenue rose to $492.9 million from $446.8 million, while operating income increased to $22.8 million from $5.5 million in second quarter 2013. Cost as a percentage of revenue fell to 95.4% following implementation of the new labor agreement in November 2013, compared with 98.9% in the year-ago period.
Total second quarter revenue per hundredweight increased by 4.2% over last year and increased 6.9% versus first quarter of this year. ABF Freight also benefited from the previously announced network consolidation of 30 terminals that began in July 2013 and was completed in mid-March of this year, according to the company.
ArcBest’s emerging, non-asset-based expedited businesses, including Panther, grew combined revenues at a rate of 28%. During the second quarter, these businesses equaled 27% of total consolidated revenue compared to 24% during the same period last year. Second quarter 2014 earnings before interest, taxes, depreciation and amortization at the non-asset-based businesses was $10.2 million, an increase of 47% compared to the same time last year.
Panther’s second quarter revenue increased by 35% and operating income was nearly three times higher than the same period last year.
At ArcBest’s other emerging non-asset-based businesses, ABF Logistics experienced second quarter revenue growth of 46% compared to the same period of 2013. Second quarter revenues at FleetNet America, the company’s vehicle maintenance and repair operation, increased by 16% over 2013 as new customers were added during the quarter. ABF Moving experienced an 8% revenue increase during the quarter as it entered the seasonal period of increased business levels associated with summer moving activities.
“As the economy picked up in the second quarter, ABF Freight experienced better pricing conditions and also saw the positive impact from the new labor agreement, while Panther reported one of the strongest quarters in its history,” said ArcBest President and Chief Executive Officer Judy R. McReynolds. “We are also seeing more customers buying at the enterprise level, when they require two or more ArcBest services.”
More information is on the ArcBest website.