Ar­cBest earns $15.7M in 2Q

Rev­enue rises to $720.4M as ship­per earns more per load

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM -

DAL­TON LAFERNEY

Ar­cBest Corp. gen­er­ated $720.4 mil­lion in rev­enue in its sec­ond quar­ter, up from $676.6 mil­lion in the sec­ond quar­ter of 2016, the com­pany re­ported Fri­day.

Ar­cBest re­ported about $15.7 mil­lion in profit, about $5.5 mil­lion more than the same time last year. Earn­ings per share this quar­ter rose to 60 cents com­pared with 39 cents a year ago.

Com­pared with the sec­ond quar­ter of last year, Ar­cBest shipped about 6,000 fewer tons, 1,000 more ship­ments, and is mak­ing about $7 more per ship­ment this quar­ter. Ar­cBest does not re­veal how much it makes per mile, a com­mon met­ric that shows in greater de­tail how much a ship­per’s cus­tomers are will­ing to pay. But Ar­cBest this quar­ter did make about $378 per ship­ment, while it made about $371 per ship­ment the same time last year.

Ear­lier in the quar­ter, Ar­cBest an­nounced that it would join oth­ers in the lessthan-truck­load in­dus­try by charg­ing cus­tomers based on size, rather than only on weight. As more peo­ple or­der on­line and pur­chase smaller, more cus­tom­ized goods, ship­pers have to adapt.

In an earn­ings call Fri­day morn­ing, Ar­cBest ex­ec­u­tives noted the strong e-com­merce en­vi­ron­ment and sig­naled to in­vestors that its ad­just­ments in in­for­ma­tion tech­nol­ogy are start­ing to pay off.

“This is de­signed to en­sure that we are ap­pro­pri­ately com­pen­sated for cube-

● dom­i­nated ship­ments that have pro­lif­er­ated through­out our net­work,” Ar­cBest Chief Ex­ec­u­tive Judy McReynolds said in the earn­ings call.

Bob Wil­liams, the vice pres­i­dent and man­ag­ing di­rec­tor of Sim­mons First In­vest­ment

Group, said this kind of re­con­fig­u­ra­tion blurs the lines be­tween tra­di­tional bulk ship­pers and last-mile de­liv­ery driv­ers. The in­dus­try has seen FedEx and United Par­cel Ser­vice be­come more com­pet­i­tive on this front.

“More light pack­ages is in­dica­tive of a mor­ph­ing cus­tomer de­sire, a de­sire for more cus­tomer-di­rect de­liv­ery,”

Wil­liams said.

Along these lines, com­pany of­fi­cials noted an uptick in de­mand for its ex­pe­dited seg­ment. The earn­ings re­port data show the com­pany is mak­ing about 14 per­cent more from each ship­ment in this sec­tor, and there are about 4 per­cent more ship­ments per day than last year’s sec­ond quar­ter.

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