Forward Air Profit Jumps on Pricing, Cost Controls

Air freight forwarder Forward Air nearly tripled its net profit in the second quarter to $7.9 million as revenue grew 22 percent while the company kept the lid on costs.

The company’s yield, an indication of pricing, grew 5.7 percent over the same quarter a year ago, Tennessee-based Forward Air said.

“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,” said Bruce A. Campbell, chairman, president and CEO. “Sequentially, from the first quarter 2010, we were able to convert approximately half of our incremental revenue growth to the bottom line.”

The company also steered away from unprofitable business and replaced it with more profitable new business.