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Forward Air Corp. posted increased revenue but narrower net income for the first quarter of 2020, the company reported.
The Greeneville, Tenn.-based ground transportation and logistics services company on April 30 said Q1 net income dipped to $8.4 million, or 30 cents per diluted share, compared with $18.4 million, or 64 cents, during the year-ago period.
Total revenue increased by 6.5% to a record $342.5 million from $321.5 million a year ago.
The results missed expectations by investment analysts on Wall Street, which had been looking for EPS of 41 cents per share and quarterly revenue of $341.3 million, according to Zacks Consensus Estimate.
“Our record first-quarter revenue was driven by our recent Final Mile and Intermodal acquisitions, which are reflected in our first-quarter results. However, COVID-19 has been a perfect storm — globalization at its darkest — that has impacted all of our modes given our networks’ exposure to nonessential freight with heavy ties to air and ocean freight from Asia and the retail mall business,” CEO Tom Schmitt said in a statement.
He added, “Volumes fell sharply in March and April. The signs of a slow recovery are emerging as we enter May, but visibility is limited. We are responding by flexing our asset-light model, and greatly enhancing cost reduction programs that were already in force.”
The company’s expedited freight segment reported Q1 revenues increased 11.2 % to $251.2 million from $223 million during the same time period last year. This segment includes network, truckloads and final-mile operations.
The intermodal segment reported Q1 revenue decreased 3.2 % to $52.4 million from $54.1 million during the same time period last year.
The pool distribution segment reported that revenues during quarter decreased 14.7% to $39.4 million from $45.2 million during the same time period last year.
Forward Air ranks No. 31 on the Transport Topics Top 100 list of largest for-hire carriers in North America, and No. 1 on the Air/Expedited sector list.
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