ArcBest saw its second quarter profits triple as the Fort Smith-based trucking firm emerges from a reorganization aimed at streamlining expenses, diversifying its business model, and reshaping its corporate identity.
ArcBest, which recently renamed itself from Arkansas Best Corp., reported $17.2 million in second quarter net income, more than three times its $4.9 million profit one year ago. Revenues for the trucking, logistics and transportation giant jumped from $576.9 million to $658.6 million in a quarter-over-quarter comparison.
“Our second quarter results improved significantly from both the first quarter of 2014 and the year-ago quarter, which was welcome news as we emerged from the harsh winter weather earlier this year,” said ArcBest President and CEO Judy McReynolds.
“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,” she added.
“We are also seeing more customers buying at the enterprise level, when they require two or more ArcBest services. We are focused on taking advantage of all opportunities to better serve customers with holistic solutions across the supply chain,” McReynolds also said.
ArcBest, which is building a new corporate headquarters at Fort Chaffee, is also downsizing its terminal operations. It previously announced an effort to cut costs through consolidating its network, including a North Little Rock facility that will likely see its work shift to a Memphis-area terminal. ArcBest said its recent results “benefitted” from the reorganization.
The company also said that overall economic improvement and business growth contributed to its freight tonnage increasing. Also, ArcBest pointed out that tightening network capacity combined with improving pricing trends and a lower cost structure resulted in better operating margins.
ArcBest shares (NASDAQ: ARCB) closed trading Wednesday at $42.29. The company’s stock has seen a high of $45.68 per share and a low of $19.40 per share over the past year.
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