Forward Air Q3 profits slip from prior year

The deferred airfreight transportation services and drayage provider’s third quarter 2016 net income fell 24.2 percent to $11.9 million compared with the same 2015 period, according to the company’s most recent financial statements.    Forward Air Corp. posted a net income of $11.9 million in the third quarter of 2016, a 24.2 percent decline from the same 2015 period, according to the company’s most recent financial statements.
   The Greenville, Tenn.-based deferred airfreight transportation services and drayage provider reported a net income per diluted share (EPS) of $0.39 in Q3 2016 compared with $0.50 per diluted share the previous year. However, operating revenues for the quarter ticked up 1 percent to $249.6 million.
   Forward Air Chairman, President, and CEO Bruce A. Campbell said the results were in line with revised company expectations, attributing the earnings decline primarily to a “sluggish” economic environment.
   “The Expedited LTL (less-than-truckload) team did a good job managing costs and preserving margin despite soft volumes, which improved towards the end of the quarter,” said Campbell. “Expedited Truckload Services continued to grow its revenue, but it faced margin pressure due to loose truckload capacity. Our Intermodal group delivered solid revenue and operating income in a very challenging import market, while our Pool Distribution segment posted a slight revenue gain as it ramped up its recent new business wins.”
   Looking forward to the fourth quarter, Senior Vice President and Chief Financial Officer Michael J. Morris said the company expects revenues to remain stable or fall as much as 4 percent year-over-year due to the “weak economic backdrop” and the fact that Q4 2016 has one fewer operating day than last year. The company is now projecting net income per diluted share in the range of $0.37 per diluted share to $0.41 per diluted share compared to $0.75 per diluted share (including a tax benefit) in fourth quarter 2015.