First quarter operating revenues rose 14% and net income increased 10% compared to the first quarter of 1999 for Arnold Industries, Lebanon, PA.
At New Penn Motor Express, which provides next-day Northeast regional less-than-truckload service, revenues increased by 16% compared to the prior year's first quarter. New Penn had an operating ratio of 79.5 for the quarter. Operating income increased by $1.1 million, or 10.5%, compared to the prior year. New Penn took delivery of 150 new trailers during the first quarter to support the continuing growth in revenue.
Revenues increased by 6.2% at Arnold Transportation Services, the truckload subsidiary of Arnold Industries, while operating income declined by 36.7%. The regional and dedicated operations of the company continued to perform well, but interregional operations, which
have longer haul lengths, were particularly hard hit by the spike in diesel fuel prices.
Arnold Logistics, the fulfillment and logistics operations of Arnold Industries, increased revenues by 49.3% and operating income by 35.2%.
Although margins declined from the same period in the prior year, margins improved compared to the fourth quarter of 1999. Changes were made during the first quarter to certain fulfillment operations initiated during 1999 to improve efficiencies and fine-tune the revenue/cost relationship. Significant progress was made to develop a proprietary Internet order and warehouse management system in support of future e-commerce growth opportunities.