Forward Air nearly triples 2Q earnings

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Forward Air Corp. reported operating revenue for the quarter ended June 30 increased 22.5 percent to $122.1 million from $99.7 million for the same quarter in 2009. Income from operations was $13.5 million compared with $4.9 million. Net income increased to $7.9 million from $2.8 million.

Operating revenue for the six months ended June 30 increased 16.7 percent to $229.1 million from $196.3 million for the same period in 2009. Income from operations was $19.6 million compared with a $0.1 million loss. Net income was $11.3 million compared to a $0.3 million net loss.

“We are very pleased with our overall second-quarter performance,” said Bruce Campbell, chairman, president and chief executive officer of Greeneville, Tenn.-based Forward Air Corp. “The positive trends experienced in the first quarter have continued, and in some cases accelerated, during the second quarter. Through the leverage in our airport-to-airport business model, we were able to take advantage of much better year-over-year volumes, better operating efficiencies, improved yields and our continued focus on cost control. Sequentially, from the first quarter 2010, we were able to convert approximately half of our incremental revenue growth to the bottom line.”

Campbell said that by the end of the quarter, Forward Air nearly had completed the elimination of a large, unprofitable customer and was able to replace most of the related revenue with new profitable business. “Additionally, we have completed the process of identifying new industry verticals that, over time, will allow us to mitigate the harsh seasonal nature of our current specialty retail customer base,” he said.