Arkansas Best reports $15.4M 2Q net loss

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Arkansas Best Corp. today, July 22, announced a second-quarter 2009 net loss of $15.4 million compared to net income of $16.2 million in the second quarter of 2008. The company reported revenue of $362.6 million, a per-day decrease of 26.7 percent from the prior-year quarter of $498.5 million.

“The effects of lower freight levels and a competitive pricing environment that has intensified since the first quarter were the main challenges faced by our company in the second quarter,” said Robert A. Davidson, president and chief executive officer of the Fort Smith, Ark.-based company. “In addition, our results were affected by unusual increases in nonunion healthcare and pension, workers’ compensation and third-party casualty insurance claims costs versus last year. However, despite the continuation of the severe economic recession that is unlike any we have seen before, we remain focused on cost control, managing yields in a difficult environment and maintaining the high level of overall customer service that will ensure our long-term success.”

For the second quarter, ABF Freight System reported:

  • Revenue of $343.8 million compared to $479.5 million, a per-day decrease of 27.7 percent;
  • A tonnage-per-day decrease of 17.0 percent;
  • Operating loss of $26.8 million compared to operating income of $25.5 million; and
  • Operating ratio of 107.8 percent compared to 94.7 percent.
  • “ABF continues to manage its network resources, especially labor and equipment, to the level of freight moving throughout its network,” Davidson said. “As needed, additional reductions in system resources and costs have been made in the last few months. Though success in our business requires us to efficiently manage costs, we do so carefully in order to preserve our ability to meet specific customer requirements and to offer unique value in the marketplace. Our solid financial position provides the necessary flexibility to take a long-term approach to customer relationships, even in the midst of the current challenging environment.”

    Davidson said the company is fortunate to have a solid financial position. “Our ongoing financial strength gives us the foundation to navigate through this difficult time while offering the opportunity to achieve our long-term goals when things finally improve,” he said. “In the meantime, we will strive to weather this storm while serving our customers with a high level of service that distinguishes us throughout the LTL industry.”