ArcBest CEO Judy McReynolds at the 2022 Arkansas Business of the Year Awards
ArcBest Corp. of Fort Smith (Nasdaq: ARCB) on Friday reported record annual revenue and profit for the second straight year, along with slowing demand in the final quarter of 2022.
Revenue in 2022 totaled $5.3 billion, up more than 33% from $3.98 billion a year ago. Net income was $298.2 million for 2022, up 28.4% from $213.5 million a year ago.
Per share, earnings came to $11.69, up from $7.98.
For the fourth quarter of 2022, the transportation and logistics company reported revenue of $1.24 billion, up from $1.19 billion.
But quarterly income fell 43% to $37.3 million, down from $65.5 million in the same period a year ago. The company reported flat total daily shipments and a decrease in total freight tonnage in its asset-based division, ABF Freight. The company’s Asset-Light segment saw a slowdown in customer shipping volume amid “weakening market conditions.”
“Moving forward, ArcBest Asset-Light operating costs will be monitored and managed in response to customer demand and on-going market conditions,” ArcBest said in a news release.
Fourth-quarter earnings per share came to $1.48, down from $2.47.
The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.64 per share.
“Despite the challenges in 2022 as a result of ongoing macro trends, the ArcBest team remained focused on serving our customers and advancing our strategic initiatives,” CEO Judy McReynolds said.
ArcBest celebrates its 100th anniversary in 2023. The company announced it was giving its qualified union employees $16.2 million in profit-sharing bonuses, up $1 million from a year ago.
“We see tremendous opportunity ahead as we celebrate our 100th anniversary in 2023 – an impressive milestone that would not be possible without our dedicated people, who are at the heart of our success,” McReynolds said.
ABF Freight, reported quarterly revenue of $711.4 million, up from $683.5 million. Quarterly operating income was $75.1 million, down from $83.1 million.
For the fiscal year, ABF Freight’s revenue was $3.01 billion, up from $2.6 billion, and its operating income was $381.1 million, up from $260.7 million.
The company’s logistics division, ArcBest, reported quarterly revenue of $479.1 million, up from $472.3 million, and quarterly operating income of a loss of $11.3 million, down from a profit of $12.8 million.
For the fiscal year, ArcBest’s revenue was $2.1 billion, up from $1.3 billion, and its operating income was $52.7 million, up from $46.4 million.
FleetNet, the company’s maintenance division, reported quarterly revenue of $93.3 million, up from $68.9 million, and operating income of $1.6 million, up from $1.1 million. For the fiscal year, FleetNet reported revenue of $343.1 million, up from $254.1 million, and operating income of $5.8 million, up from $4.5 million.
The Associated Press contributed information to this report.
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