ArcBest's selective freight strategy is paying off
ArcBest's focus on heavier, higher-profit freight helped third-quarter net income climb to $51.7 million.
A tighter truckload market and a more selective freight mix are boosting margins at ArcBest (CCJ Top 250, No. 19).
Third-quarter revenue climbed to $1.21 billion from $1.05 billion a year earlier. Net income was $51.7 million compared with $39.3 million from the same period last year.
“We’re not assuming a significant freight recovery, but we’re seeing some early signs that are encouraging,” said President and CEO Seth Runser in a call with analysts. He cited early signs of improvement in building materials, automotive, food service and third-party logistics.
At ABF Freight, daily shipments slipped 3% to about 20,460, but weight per shipment rose 13% to 1,204 pounds, pushing daily tonnage up 9.6%. Billed revenue per shipment increased 14.2% to $610.78.
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