ArcBest Reports $20 Million Profit
With record second-quarter revenue, ArcBest's net income rose to $20 million, or 74 cents per diluted share, from $17.2 million, or 64 cents per diluted share a year earlier.
ArcBest Corp. (ARCB) on Monday reported its second quarter 2015 net income increased to $20 million, or 74 cents per diluted share, from $17.2 million, or 64 cents per diluted share a year earlier.
Revenue was up to $696.1 million from $658.6 million for the Arkansas-based trucking and logistics provider.
"ArcBest posted strong results this quarter, with our highest second quarter revenue ever," said ArcBest President and CEO Judy R. McReynolds. "I am pleased that our strategic investments in an expanded set of service offerings are resulting in a greater percentage of customers turning to the ArcBest companies for solutions to their supply chain challenges."
The company’s less-than-truckload operation, ABF Freight, had revenue of $504.4 million compared to $492.9 million in second quarter 2014, an increase of 2.3%, resulting from greater tonnage combined with continued positive trends in account pricing.
Tonnage per day increased 1.9%, while total billed revenue per hundredweight moved 0.4% higher. Total second quarter pricing yields were slightly positive despite year-over-year reductions in fuel surcharge due to lower fuel prices.
In the company’s asset-light logistics operations, revenue was $204.9 million compared to $178.1 million in second quarter 2014, an increase of 15%. These businesses equaled 29% of total consolidated revenue compared to 27% during the same period last year, according to the company.
Second quarter 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) of $13.5 million compared to EBITDA in second quarter 2014 of $10.2 million. ArcBest said revenue growth was affected by strong increases at ABF Logistics and ABF Moving.
“Truckload brokerage activity drove the second quarter revenue and margin increases at ABF Logistics as additional business was added with both new and existing shippers," the company said in a release. "Panther Premium Logistics second quarter profitability improved over the previous year due to moderately higher shipment gross margins and cost management."
Further details are on the ArcBest website.
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