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ArcBest Swings to $6M 1Q Loss, Cites ‘Sluggish’ Manufacturing

2 min read

ArcBest Corp. of Fort Smith reported a first-quarter income loss of $6.1 million, a drop from the $745,000 profit it reported in the same quarter of 2015.

The first quarter is traditionally a difficult quarter for ArcBest. Its 2015 profitable first quarter had been its best in seven years.

ArcBest reported revenue of $621.5 million in the quarter, compared to $613.2 in the same quarter of 2015. Earnings per share, predictably, fell to a loss 24 cents compared to 3 cents last year.

The company blamed a “sluggish and inconsistent industrial and manufacturing economic environment.”

“Ongoing economic weakness continued to impact our business, consistent with trends that began in the fall of 2015,” said ArcBest CEO Judy McReynolds, who became chairman of the company’s board of director at the annual shareholders meeting Tuesday. “We are encouraged by the ongoing stability in LTL pricing and by the positive reception our customers have to the expanding array of services we offer in helping them better manage their complex supply chain issues.”

ABF Freight, the company’s trucking division, reported revenue of $439.5 million, down from $441.2 million in the same quarter of 2015. ArcBest said ABF Freight’s revenue was affected by continuing lower fuel prices.

ArcBest’s asset-light divisions, which the company has been focusing on growing, saw their revenue increase to $194.7 million from $183.7 million in the same quarter a year ago. The asset-light divisions accounted for 31 percent of ArcBest’s revenue, compared to 29 percent a year ago; in 2009 they accounted for 7 percent of the company’s revenue

ABF Logistics saw a big increase in revenue, to $66.9 million from $47.3 million in the same quarter a year ago, while Panther Premium Logistics saw its revenue drop to $66 million from $75.3 million.

FleetNet, the company’s maintenance division, saw a small increase in revenue to $43.6 million from $42.5 million. ABF Moving, its household moving division, had revenue of $18.1 million, a decrease from $18.6 million in the same quarter a year ago.

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