ArcBest Corp. of Fort Smith (Nasdaq: ARCB) reported Tuesday an increase in income for the fourth quarter of fiscal 2023, although profits were still lower for the year.
The freight transportation and logistics company said its quarterly income was $48.8 million, an increase of nearly 31% from $37.3 million a year ago. Earnings per share came to $2.01, up from $1.48.
Adjusted earnings were $2.47 per share, which beat Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $2.19 per share.
Income came on quarterly revenue of slightly less than $1.1 billion, down from $1.2 billion a year ago but higher than Wall Street forecasts. Four analysts surveyed by Zacks expected $1.08 billion.
For the fiscal year, ArcBest reported revenue of $4.4 billion, down from a company record $5.03 billion. Income was $195.4 million, down from $298.2 million, and earnings per share was $7.93, down from $11.69.
During the fiscal year, ArcBest agreed to a new five-year contract in June with the International Brotherhood of Teamsters and its 8,500 members who work for ABF Freight, the company’s less-than-truckload subsidiary. ArcBest also sold its maintenance and repair subsidiary, FleetNet, for $100 million in February.
“2023 was a milestone year for ArcBest as we celebrated our 100-year anniversary and again delivered solid financial results,” ArcBest CEO Judy McReynolds said in a statement. “In a year marked by market disruptions and increased supply chain complexity, our people remained a critical driver of our success, helping us achieve the second-best revenue performance in ArcBest’s history.
“In addition to significant operational and efficiency improvements in 2023, we are proud to have renewed our five-year labor agreement and received recognition for our innovation efforts and commitment to service excellence. We look forward to accelerating growth, increasing efficiency and fostering innovation as we look ahead to even greater success in our next hundred years.”
ABF Freight, the company’s asset-based division, reported quarterly revenue of $709.9 million, down from $711.4 million. Operating income was $87.5 million, up from $75.1 million.
For the fiscal year, ABF Freight reported revenue of $2.9 billion, down from $3 billion. Operating income was $253.2 million, down from $381.1 million.
ArcBest reported quarterly shipments of more than 1.2 million, 231 more than the previous quarter, and revenue per shipment of $570.64, down slightly from $571.21. For the year, shipments were 3% but revenue per shipment was $554.53, down more than 7% from $599.04.
ArcBest’s asset-light division, formerly comprised of its logistical segment ArcBest and its maintenance division FleetNet, reported quarterly revenue of $413.4 million, down from $479.1 million. Operating income was a loss of $7.7 million, an improvement from a loss of $11.3 million a year ago.
For the fiscal year, revenue was $1.7 billion, down from $2.1 billion. Operating income was a loss of $12.3 million, down from $52.7 million.
The asset-light division reported a quarterly drop in revenue per shipment of 23.9% but shipments were up 12.4%. For the year, revenue per shipment was down 25.3% while total shipments were up 5.3%.
This article has been updated to clarify that ArcBest’s adjusted earnings in the fourth quarter beat Wall Street forecasts. Also, the company’s fourth-quarter revenue was higher than first reported.
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