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ABF | Q1 2021...Record quarterly revenue that increased 18% over last year.

GO40 said:
Maybe you should re-read the thread it says record first quarter for Arcbest….and most of the employees are unhappy….So how did this happen?
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I'm sure you have a answer for your own question
 
Sumting Wong said:
Rents and purchased transportation




75,588


13.6






55,770


10.8
Why not break out purchased transportation from rents??? Looks like purchased transportation went up 20 million bucks.
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Nothing to see here keep moving…. The person in charge of purchased transportation was probably promoted….
 
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Purchased transportation use,isn’t going to go down or disappear from any of the LTL’s. It’s cheaper, and a steady revenue producer for truckload carriers who are paying their drivers around 50 cents per mile average, and crap healthcare.
 
BIG R GUY said:
Purchased transportation use,isn’t going to go down or disappear from any of the LTL’s. It’s cheaper, and a steady revenue producer for truckload carriers who are paying their drivers around 50 cents per mile average, and crap healthcare.
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However, it cost's more to use Purchase Transportation than using our own drivers. That is because the cost the truck load carrier charges ABF is more than the cost of using our own drivers. Just because the Truckload Carrier pays their drivers sub-standard wages and benefits does not mean they don't charge ABF an arm and a leg for their services.
Think of it as an Employee Agency. An Employee Agency may only pay their employees $10 an hour to work for an employer, but the fee they charge the employer is more around the $30 to $35 an hour range or even more in some cases.
 
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Steward of the Rock said:
However, it cost's more to use Purchase Transportation than using our own drivers. That is because the cost the truck load carrier charges ABF is more than the cost of using our own drivers. Just because the Truckload Carrier pays their drivers sub-standard wages and benefits does not mean they don't charge ABF an arm and a leg for their services.
Think of it as an Employee Agency. An Employee Agency may only pay their employees $10 an hour to work for an employer, but the fee they charge the employer is more around the $30 to $35 an hour range or even more in some cases.
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I would have to disagree though, Stew. I had seen right from a terminal manager what it cost per mile, when you figure the per mile cost of a company drivers, wages, benefits, pension, tractor fuel, insurance, motels, maintenance, against what they pay an outside carrier per mile to move that same trailer. Truckload carriers are like everyone else. They need a certain amount of daily, continuous revenue flow to pay the costs of operation, before any profits are realized. Terminal to terminal drop and hook LTL freight is quick miles, and revenue. I would bet purchased is 15, to 20 percent cheaper. Thanks for stopping by.
 
BIG R GUY said:
I would have to disagree though, Stew. I had seen right from a terminal manager what it cost per mile, when you figure the per mile cost of a company drivers, wages, benefits, pension, tractor fuel, insurance, motels, maintenance, against what they pay an outside carrier per mile to move that same trailer. Truckload carriers are like everyone else. They need a certain amount of daily, continuous revenue flow to pay the costs of operation, before any profits are realized. Terminal to terminal drop and hook LTL freight is quick miles, and revenue. I would bet purchased is 15, to 20 percent cheaper. Thanks for stopping by.
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That is a fair assessment, but most of the things you just described as cost (except for the pension and benefits) are costs that are figured in to the carriers cost as well. So we have to agree to disagree on which one is cheaper. If it were cheaper, then I would think that most of the non union companies would use it exclusively to save money as there is no contract language to protect it from happening.
 
BIG R GUY said:
Purchased transportation use,isn’t going to go down or disappear from any of the LTL’s. It’s cheaper, and a steady revenue producer for truckload carriers who are paying their drivers around 50 cents per mile average, and crap healthcare.
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Steward of the Rock said:
That is a fair assessment, but most of the things you just described as cost (except for the pension and benefits) are costs that are figured in to the carriers cost as well. So we have to agree to disagree on which one is cheaper. If it were cheaper, then I would think that most of the non union companies would use it exclusively to save money as there is no contract language to protect it from happening.
BIG R GUY said:
I would have to disagree though, Stew. I had seen right from a terminal manager what it cost per mile, when you figure the per mile cost of a company drivers, wages, benefits, pension, tractor fuel, insurance, motels, maintenance, against what they pay an outside carrier per mile to move that same trailer. Truckload carriers are like everyone else. They need a certain amount of daily, continuous revenue flow to pay the costs of operation, before any profits are realized. Terminal to terminal drop and hook LTL freight is quick miles, and revenue. I would bet purchased is 15, to 20 percent cheaper. Thanks for stopping by.
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Well how close are you to your terminal manager? Most of us common folk have no access to what you claim….So how long are you going to stop cracking jokes and join reality?
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What I claim is from what I have learned about the trucking industry in the last 40 years, talking to people and asking questions, as a driver.
 
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GO40 said:
They still would have lost $30 million…. Something is definitely wrong….
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When you're heavily in debt you can't easily invest in new equipment, new technology or make many other costly changes to improve operations. Not making excuses but that's the reality. The fact that they are still operating after so many years of doom and gloom says something.
 
Sumting Wong said:
  • First quarter 2021 revenue of $829.2 million, and net income of $23.4 million, or $0.87 per diluted share. On a non-GAAP1 basis, first quarter 2021 net income of $27.2 million, or $1.01 per diluted share.
  • Record quarterly revenue that increased 18% over last year.
  • First quarter operating income, which increased more than three times over first quarter 2020, was the best in ArcBest’s history.
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Am jealous. my company didn't make the cut
 
Triplex said:
When you're heavily in debt you can't easily invest in new equipment, new technology or make many other costly changes to improve operations. Not making excuses but that's the reality. The fact that they are still operating after so many years of doom and gloom says something.
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I understand, I feel bad for my brothers over there...pisses me off that the management there still hands out bonuses......how do they figure that? My thinking is no one should get a bonus at a money losing company, they can lose money without the valuable upper management...
 
Triplex said:
When you're heavily in debt you can't easily invest in new equipment, new technology or make many other costly changes to improve operations. Not making excuses but that's the reality. The fact that they are still operating after so many years of doom and gloom says something.
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It has a lot to do with those long term synergies, Zollars instituted.
 
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