ArcBest 2Q Profit Tumbles
by July 29, 2016 10:17 am 159 views
ArcBest Corp. of Fort Smith reported an inconsistent economy and a carrier surplus contributed to a 49 percent decrease in second-quarter net income.
Reporting before the markets opened Friday, the holding company posted net income of $10.2 million, or 39 cents per share, compared with net income of $20 million, or 74 cents per share, during the same quarter last year.
The company missed the average earnings estimate of 43 cents per share, according to Thomson Reuters.
Revenue fell nearly 3 percent to $676.6 million.
ABF Freight System Inc., the company’s largest subsidiary, accounts for about 70 percent of ArcBest’s revenue.
“Despite the current environment, we have a tremendous market opportunity within a customer base that values our differentiated customer experience,” Judy R. McReynolds, ArcBest chairwoman, president and CEO, said in a news release. “The ArcBest companies continue to provide more logistics service options to our customers, who in turn value the trusted advice and deep industry knowledge we bring to help solve their logistics challenges.”
The company noted in the release its asset-light logistics business increased slightly as a result of ABF Logistics’ revenue growth, primarily driven by the December 2015 acquisition of Bear Transportation.
On July 28, ArcBest declared a quarterly cash dividend of 8 cents per share to holders of record of its common stock on Aug. 11, payable Aug. 25.
ArcBest shares were at $18.67 at midmorning Friday on the Nasdaq, up 73 cents or 4.07 percent. Shares have traded between $14.85 and $34.97 in the past year.