Overall 1H 2014 results were not as strong, as Q1 was a lukewarm quarter versus the strong Q2 results, as the carrier's performance was to a degree impacted by very poor weather conditions in much of the US in Q1.
1H 2014 LTL Carrier Results
| First Half 2014 |
Data in $Thousands |
| Carrier |
YRC Worldwide |
ARCBest/ABF* |
Old Dominion |
Conway** |
Saia |
Total Carriers |
| Total Operating Rev Including Fuel |
$2,528,500 |
$1,236,550 |
$1,323,263 |
$1,788,530 |
$630,129 |
$6,876,843 |
| Change 2014 from 2013 |
5.1% |
12.7% |
17.2% |
13.1% |
11.3% |
8.3% |
| LTL Tonnage |
5.6% |
5.3% |
14.4% |
NA |
NA |
|
| Net Income |
-$75,100 |
$12,015 |
$119,736 |
$101,586 |
$22,144 |
$180,381 |
| Change 2014 from 2013 |
Had $39.6 million loss in 2013 |
Had $8.5 million loss in 2013 |
21.2% |
43.7% |
-2.3% |
120.9% |
| Net Income as % of Revenue 2014 (total is unweighted average) |
-3.0% |
1.0% |
9.0% |
5.7% |
3.5% |
3.2% |
| Net Income as % of Revenue 2013 |
-4.3% |
-0.6% |
8.8% |
4.1% |
4.0% |
2.4% |
| LTL Operating Ratio 2014 (total is unweighted average) |
100.5% |
98.8% |
84.7% |
94.7% |
94.0% |
94.5% |
| LTL Operating Ratio 2013 (total is unweighted average) |
99.0% |
102.0% |
85.5% |
95.8% |
93.4% |
95.1% |
| * Includes numbers from its Panther Express Unit, except for tonnage data and OR percents |
| ** The Conway numbers refer only to its LTL group, not the business as a whole, which includes Menlo Logistics,a truckload business, and other units |
| Conway Income Refers to Operating Income only for LTL Group, before other Expenses that would be included in full net income number as is posted for the other carriers |
In the section below, we break out key points made in each carrier's earnings releases and analyst presentations.
YRC Worldwide
Carrier said it saw a slight gain in revenue per hundredweight.
Results were impacTed by a $2.9 million increase in cargo claims expense in the quarter.
"In order to improve network performance during the quarter, we opened three terminals, increased the use of purchased transportation and increased the utilization of part-time dock employees," stated Darren Hawkins, YRC Freight President. "Additionally, our plans to convert three current terminals to distribution centers in the third quarter remain on target which we anticipate will better balance our capacity and match it to increasing demand.
Hawkins adds that from a macro perspective, YRC is seeing a robust pricing environment, and that at its YRC Freight unit specifically the company is being disciplined in obtaining pricing increases on lower margin accounts.
"As the second quarter progressed, we achieved significant contractual negotiated pricing increases and in July we continue to see these levels of increases. With continued improvement in the economy and our service levels, we expect our ability to increase pricing should remain strong," added Hawkins.
In Q2, the company installed 13 of the 40 planned dimensioners in the YRC Freight network.
"These dimensioners allow us the ability to cost each shipment based on the actual cubic volume of the shipment," said Hawkins.
Results continue to be much better in YRC's regional segment that inits national YRC Freight unit. In Q2, YRC Freight had a operating ratio of 100%, versus 95.1% in the regional segment.
ArcBest/ABF Freight
On a per share basis, this represents ArcBest's most profitable quarter in six years.
At ABF Freight, second quarter revenue rose to $492.9 million from $446.8 million, while operating income increased to $22.8 million from $5.5 million in second quarter 2013.
Cost as a percentage of revenue improved to 95.4% percent following implementation of the new labor agreement in November 2013.
ABF Freight said it also experienced better pricing conditions in Q2.
Total second quarter revenue per hundredweight, a partial proxy for rate changes, increased by 4.2% over last year and increased 6.9% versus first quarter of this year
ABF Freight's recent ability to use purchased transportation, a flexibility component of the new ABF Freight labor contract, has positively impacted its network operations, the company said.
Old Dominsion
Old Dominion's growth accelerated in the second quarter, driving record results for its quarterly revenue, tonnage and earnings.
Old Dominions operating ratio by 100 basis points(1%) over the prior-year period to 82.5%, which is the best quarterly operating ratio in the ompany's history.
For both the first and second quarters of 2014, Old Dominion said it achieved 99% on-time delivery performance and maintained a cargo claims ratio at a historical low of 0.26%.
The company expects to fund its 2014 capital expenditures of some $375 million primarily with our cash flow from operations - a claim few carriers could make.
Conway Freight
Revenue per hundredweight, or yield, increased 4.7% from the previous-year second quarter. Excluding fuel surcharge, yield rose 4.1%.
"Our strategic focus on revenue management was reinforced by strong demand and a firming rate environment," the company said. "Against the backdrop of these industry dynamics, we effectively employed our proprietary planning and pricing tools to drive profit improvement."
Saia
Revenues were $330 million, an increase of 12.9% over 2013.
LTL tonnage increased 6.9% as LTL shipments were up 5.5% with a 1.4% increase in weight per shipment.
"The higher accident severity in the second quarter masked the strong tonnage growth and favorable pricing trends that we achieved. LTL yield improved 4.9%, reflective of our customers' recognition of the value proposition Saia provides," said CEO Rick O'Dell.
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