Forward Air’s profits surge
North American logistics provider Forward Air reported solid growth in the third quarter of 2011, which ended September 30. Operating revenue rose 11.7 percent, year-over-year, to $135.7 million, while net income surged $4 million from the third quarter of 2010, totaling $12.9 million.
Forward Air’s operating revenue was positively affected by income from operations, which increased from 12.8 percent in the third quarter of 2010 to 15 percent in 2011.
The first nine months of 2011 were also profitable for Forward Air. In addition to experiencing a 10.7-percent, year-over-year, hike in operating revenue, the logistic provider also saw net income rise a whopping $12.6 million from January-to-September 2010.
But it’s Forward Air’s third-quarter results that really has company CEO Bruce Campbell talking. “As compared to the third quarter of 2010, our nearly 12-percent increase in operating revenue translated to approximately 34 percent of incremental profit, once again demonstrating the significant leverage of our operating model,” he said in a statement.
What’s more, Campbell said, Forward Air began the third quarter with some “intermittent softness” in freight volumes. “Over the course of the quarter, tonnage firmed up very nicely, ending the quarter with system tonnage up 9.5 percent for the month of September as compared to September one year ago,” he remarked.
Campbell’s also optimistic about fourth-quarter freight traffic. “We would characterize current volume trends as being moderately better than normal seasonality,” he said in a statement.