ArcBest has announced its fourth quarter and full year 2016 financial results. It reported revenues for 2016 of $2,700m, up 1.2% year-over-year. In Q4, revenues increased 6.2% to $688m when compared against the same period in 2015.
Adjusted EBITDA for the group was down 12.8% on 2015 to $163m. This reduction in profitability was due in large part to increased operating costs, where asset-light and asset based expenditure increased 7.1% and 1.5% respectively. For Q4 however, EBITDA was up on the same quarter in 2015. The increase was 12.9% to $43m.
In its asset-based operations, ArcBest turned over revenues of $1.92bn, showing flat growth for the year as total tonnage was up just 0.1%. The asset-light area of the business fared better, increasing revenues by 5.0% to $803.4m for the year.
ArcBest Chairman, President and CEO Judy McReynolds said, “Although 2016 was a challenging freight environment, we were pleased with our positive momentum, particularly in our expedited service offerings, as we closed the year. That improvement, combined with expanded asset-light truckload service offerings, and the assets available through the broad ABF LTL network, means that we are positioned well with capacity sources when our customers ask for integrated logistics services to meet their needs. ArcBest’s enhanced market approach, combined with the cost savings resulting from our improved organizational structure, has resulted in a more efficient process for delivering an excellent experience for our customers.”
Source: ArcBest
