ArcBest achieved in Q2 a $3 million cost reduction goal in its asset-light segment by reducing employee-related and outside services costs, the company said in an earnings report last week.
The LTL and logistics provider set the goal a quarter earlier after business levels declined in its asset-light operations.
“Higher market rates on committed business combined with solid customer demand resulted in strong asset-light revenue growth and record profitability in that business in second quarter 2022,” CFO and Treasurer Matt Beasley said on an earnings call.
ArcBest’s asset-light segment profits began surging in 2021, and they still remain elevated compared to other recent years. For Q2 this year, operating income for the segment declined by 52% YoY to $13.18 million.
The segment provides logistics and maintenance solutions for customers seeking to avoid significant spending on equipment and real estate, according to an annual report.
ArcBest has made other strategic adjustments to its maintenance portfolio in the past six months as asset-light business declines.
In a Q1 report, ArcBest noted its sale of FleetNet America for $101.1 million represented a "strategic shift for the Company as it is exiting the fleet roadside and maintenance management business.”
