Forward Air Corp. on Wednesday, April 20, said that operating revenue for the first quarter ended March 31 increased 12.3 percent to $120.2 million from $107.0 million for the same quarter in 2010. Income from operations was $13.3 million compared with $6.1 million. As a percent of operating revenue, income from operations increased to 11.1 percent from 5.7 percent. Net income increased to $7.9 million from $3.4 million.
“We were very pleased with out first-quarter performance,” said Bruce Campbell, chairman, president and chief executive officer of Greeneville, Tenn.-based Forward Air. “Our operating income exceeded last year’s by 118 percent driven, in large part, by the exceptional performance of our airport-to-airport service offering. Ongoing low inventory levels and tightening capacity has increased the demand for our expedited time-definite service mode of transportation, and we believe this provides for substantial growth potential for the foreseeable future.”
Campbell said the company’s Forward Air Solutions business segment results were driven by traditionally weak first-quarter demand compounded by horrible weather early this year. “Unlike our core business, specialty retail sales that are missed due to bad weather are typically not recaptured,” he said. “With the majority of our cost-control initiatives in place, Solutions stands poised for profitability as volumes return from existing customers and we build density from new business wins.”