ArcBest Corp. of Fort Smith on Tuesday reported income of $29.4 million as it benefited from a better freight market during the ongoing COVID-19 pandemic.
The 2020 third-quarter income was an improvement from the $16.8 million reported in the same quarter a year ago. ArcBest reported second-quarter income of $15.9 million three months ago.
Revenue for the quarter was $794.9 million, an increase from $787.6 million a year ago. Earnings per share was $1.11, up from 62 cents in the same quarter a year ago.
For the first nine months of fiscal 2020, ArcBest reported revenue of $2.1 billion, down from $2.3 billion a year ago, and income of $47.2 million, up from $45.5 million in the same time period a year ago.
“I am incredibly proud of our employees and how they have performed on behalf of customers as we navigate through the pandemic together,” said Judy McReynolds, ArcBest’s CEO and chairman of the board. “Throughout the third quarter and into October, the ArcBest team, enabled by technology and assured capacity options, is providing much-needed flexibility to customer supply chains while also improving operational efficiency. Our company was built on strong customer relationships and it is our goal to ensure those customers are positioned well to succeed.”
ArcBest’s asset division revenue, its largest, reported revenue, was $561.9 million, down from $565.6 in the same quarter a year ago. Operating income, though, improved to $36.6 million from $31.7 million.
The improvements in the market led to a nearly 6% increase in revenue per shipment even though the number of shipments dropped 2.3%. ArcBest said it handled shipments more efficiently and reduced empty miles to improve its profitability.
The company’s logistics division, ArcBest, reported revenue of $217.3 million, up from $199.8 in the same quarter a year ago. Operating income was $4.8 million, up from $2.5 million.
FleetNet, the company’s maintenance division and a part of its asset-light segment along with ArcBest logistics, reported revenue of $50.5 million, down from $53.9 million. Operating income was $987,000, down from $1.2 million.
“Tremendous opportunity exists for us to sustain the momentum of the third quarter and continue to profitably grow our company,” McReynolds said. “As an innovative and integrated logistics company, I am excited about what the future holds and am confident in the strength and abilities of our workforce and leadership to seize the growth opportunity ahead of us.”