Arkansas Best reports lower 2Q profit, revenue

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Arkansas Best Corp. today, July 25, announced second-quarter 2007 net income of $19.6 million compared to second-quarter 2006 income from continuing operations of $29.0 million. Arkansas Best’s second-quarter 2007 revenue was $458.2 million compared to second-quarter 2006 revenue of $479.3 million.

ABF Freight System, the company’s largest subsidiary, had second-quarter 2007 revenue of $442.9 million, a per-day decrease of 5.1 percent from second-quarter 2006. Second-quarter 2007 operating income at ABF was $30.5 million compared to $46.4 million during the second quarter of 2006. ABF’s second-quarter 2007 operating ratio was 93.1 percent versus an operating ratio of 90.1 percent in the second quarter of 2006.

“During this year’s second quarter, ABF effectively managed through a challenging environment with a softer, more competitive marketplace,” said Robert A. Davidson, president and chief executive officer of Fort Smith, Ark.-based Arkansas Best.

ABF’s second-quarter 2007 total weight per day decreased by 6.9 percent versus last year. “Our year-over-year tonnage comparisons have not significantly changed since the fourth quarter of last year,” Davidson said. “However, it’s helpful to remember that during last year’s second quarter, especially in June, ABF experienced significant increases in total business. In the current environment, ABF’s continual focus on maintaining pricing discipline, controlling costs and adding value to customer relationships becomes even more important.”

Davidson said the company continues to be excited about its long-term prospects for profitable growth with its Regional Performance Model (RPM), which provides improved next-day and second-day services in the eastern two-thirds of the United States. “Because ABF is still in the early stages of marketing RPM, the investment in these new services increased ABF’s second-quarter operating ratio by 1.3 percentage points,” Davidson said. “ABF is making progress in the regional sector. In most cases, as in our traditional long-haul market, ABF is securing this business by meeting specific customer needs or by providing value in other ways, such as superior cargo care.”