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ABF | ArcBest reported a Q1 2016 net loss of $0.24 per share vs $0.03 profit a year ago

Sumting Wong

Sumting Wong

TB Lurker
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  • Revenue of $439.5 million compared to $441.2 million in first quarter 2015, a per-day decrease of 2.0 percent. ABF Freight's revenue comparison was impacted by lower fuel surcharges attributable to the significant year-over-year decrease in diesel fuel prices.
  • Tonnage per day decrease of 0.9 percent compared to first quarter 2015.
  • Total billed revenue per hundredweight decreased 1.2 percent compared to the prior year reflecting lower fuel surcharges. Excluding fuel surcharge, the percentage increase on ABF Freight's traditional LTL freight was in the low-single digits.
  • An operating loss of $9.0 million and an operating ratio of 102.1 percent compared to breakeven operating income in first quarter 2015. Excluding adjustments for nonunion pension settlement charges, an operating loss of $8.3 million and an operating ratio of 101.9 percent. First quarter 2016 results included a $2.9 million increase in workers' compensation and casualty claims expense versus the prior-year period.
https://beta.finance.yahoo.com/news/arcbest-corporation-announces-first-quarter-100000442.html
 
reflecting a sluggish and inconsistent industrial and manufacturing economic environment.

Operating results were impacted by a $0.07 per share increase in self-insurance expense at ABF Freight versus the prior-year period.

"Ongoing economic weakness continued to impact our business, consistent with trends that began in the fall of 2015," said ArcBest Chairman, President and CEO Judy R. McReynolds. "We are encouraged by the on-going stability in LTL pricing and by the positive reception our customers have to the expanding array of services we offer in helping them better manage their complex supply chain issues."
 
In addition to the fuel impact, ABF Freight's first quarter revenue decline was due to reduced freight tonnage levels associated with weak U.S. manufacturing; high customer inventory levels and excess industry capacity available to move larger-sized shipments.

"....excess industry capacity available to move larger-sized shipments. ...." What does that mean? There is excess capacity in the truck load sector?
 
While total quarterly revenue was lower, ABF Freight's two percent daily shipment count increase caused the need for additional labor and freight handling resources in order to maintain customer service.

So we are shipping more bills that are smaller?

".... Maintenance costs are beginning to reflect the benefits of new equipment purchases made in 2015 and in early 2016. ...."
 
ABF Freight's first quarter 2016 workers' compensation and third-party casualty claims costs were significantly above ten-year historical averages reflecting both an increase in the number and severity of claims.

"....third-party casualty claims...." Are we getting into more accidents?
 
Asset-Light Logistics

However, revenue per shipment for ABF Logistics and Panther was suppressed by the effect of lower fuel prices and the impact of excess, available truckload capacity in the spot market.

??? So some of the truckload carriers are desperate and pulling a 4,000 pound shipment as a load???

Panther's shipments have resulted in shorter average lengths of haul and the need for a higher proportion of smaller cargo vans and straight trucks and fewer tractor trailers.
This change in business mix has contributed to lower revenue and profit margin, on a per-shipment basis, compared to the prior year quarter.
 
Sumting Wong said:
ABF Freight's first quarter 2016 workers' compensation and third-party casualty claims costs were significantly above ten-year historical averages reflecting both an increase in the number and severity of claims.

"....third-party casualty claims...." Are we getting into more accidents?
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This one comes as no surprise to me and I don't think it's a short term issue. If anything it will continue to worsen as the experienced workers move on to retirement and the next gen drivers comprise a larger portion of the work force. That combined with an increase in freight that is more likely to cause damage to the human body and no improvement in equipment or mindset to mitigate the matter are a recipe for an increase in injury claims. And not having the proper experience in the physical process of moving the freight leaves upper management in a quandary as to what is going on. :shrug:
 
ABFer said:
This one comes as no surprise to me and I don't think it's a short term issue. If anything it will continue to worsen as the experienced workers move on to retirement and the next gen drivers comprise a larger portion of the work force. That combined with an increase in freight that is more likely to cause damage to the human body and no improvement in equipment or mindset to mitigate the matter are a recipe for an increase in injury claims. And not having the proper experience in the physical process of moving the freight leaves upper management in a quandary as to what is going on. :shrug:
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If they want to point fingers they better be looking in a mirror. We the drivers/dockworker a did our part along with a reduction in pay & vacation. Everything we do is computerized & can see everything that goes on & where we're at every second of the day. Think it's time to micro manage management & see what type of waste can be cut out, they like us leave a computer trail....
 
GO40 said:
Think it's time to micro manage management & see what type of waste can be cut out,
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What they need to do is monitor their sales force a little, even a little would uncover the dead wood. I know of one that is either eating or sleeping (when he's not :shit:ting his pants) that would lighten the load a good bit. When The Fort gets a report that he falls asleep right in the customer's office what do they think he's doing elsewhere?
 
ABFer said:
What they need to do is monitor their sales force a little, even a little would uncover the dead wood. I know of one that is either eating or sleeping (when he's not :shit:ting his pants) that would lighten the load a good bit. When The Fort gets a report that he falls asleep right in the customer's office what do they think he's doing elsewhere?
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Very true about a certain log! I think the rest are to busy selling freight value, Panther & the rest of our entities to worry about the freight side anymore....
 
ABF is cooking the books. First they are paying an .08 a share dividend. Next ABF logistics basically takes all the profits booking freight. They also control u-pack now. They take all the cream and dump their scraps in our yards. Our union leaders look the other way and let ABF plead poverty while management keeps getting raises.
 
SAC75 said:
ABF is cooking the books. First they are paying an .08 a share dividend. Next ABF logistics basically takes all the profits booking freight. They also control u-pack now. They take all the cream and dump their scraps in our yards. Our union leaders look the other way and let ABF plead poverty while management keeps getting raises.
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Don't forget that they took Timekeeper revenues away from us too and apply them to Panther now. That makes me want to jump higher.

Dangling-Carrot.jpg
 
do I see a 15% pay cut on the horizon for the execs and all managers/sales, and other personnel? Just think how bad it would be without the beg backs! The OR is really a lot worse than it looks....
 
6PakAbs said:
do I see a 15% pay cut on the horizon for the execs and all managers/sales, and other personnel? Just think how bad it would be without the beg backs! The OR is really a lot worse than it looks....
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6PakAbs said:
do I see a 15% pay cut on the horizon for the execs and all managers/sales, and other personnel? Just think how bad it would be without the beg backs! The OR is really a lot worse than it looks....
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We do our jobs, its all the ones you mentioned are not. Its much easier going after your workforce to fix your problems then actually dealing with the real problem. I think this contract is going to be much different then the last one, the only thing we have over the other non union is health coverage our pay is lower then most of them....
 
And,........some of us are going on that pension soon for the rest of our lives.......

That involves ABF remaining a viable entity to pay into the funds....

Since the Davidson era two contracts ago, when ABF made a plea to the IBT to change our pensions to defined-contribution plans,......and were turned down, thank God,.....ABF has made it plain that as far as they are concerned, once you retire, they wash their hands of you......

The current management crew regards pension liability as a business problem to be dispensed with..........instead of an ongoing people and moral obligation to the ones that made you profitable these past 30 or so years.......You know,......What they promised us 30 years ago to get us to work here......

I guess those few at the top can pull the ripcord on their Golden Parachute,..... and laugh at us poor working slobs who didn't have the money for college on the way down .....I hope that Parachute lands them right in the middle of a highway full of roaring trucks.......reality time...
 
Freightmaster1 said:
http://www.ttnews.com/articles/base...&utm_medium=newsletter&utm_campaign=newslette
102.1 OR? Must be getting close to MOU negotiating time again?!

D9uPCxd.jpg

:chairshot:
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Good article, Brother.........."Costs are rising due to increased accident and injury costs."....

Hah!......and I'll bet that has nothing to do with their having to lower their hiring standards because of the lower wages and lack of vacation for two years for new hires....... (......hey,....uhh....Judy.....if I was a new hire, and I wanted time off ,......paid time off.......somewhere in that two plus year period where you think new hires should have their noses to the Freight grindstone and not be thinking about family or vacation or other "frivolous" stuff.........well, you know it's pretty easy to get........."hurt"......Especially when you're low in seniority an haven't developed any loyalty to this company..........).........

How dumb do they think we are?
 
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