Arkansas Best 3rd-quarter profit drops

Arkansas Best's operating ratio, a measure that compares expenses with revenue, rose during the quarter, reflecting "the effects of a deteriorating freight environment," said Robert A. Davidson, president and chief executive officer.

The Associated Press

10/22/2008

FORT SMITH, Ark. — Trucking company Arkansas Best Corp. said Wednesday that third-quarter profit fell more than 18 percent as the environment for freight carriers weakened during the period.

The earnings results were in line with Wall Street expectations, though the company's revenue fell short of analyst predictions.

For the three months ended Sept. 30, Arkansas Best earned $15.4 million, or 61 cents a share, compared to a profit of $18.9 million, or 75 cents a share, for the same period a year ago.

Revenue in the quarter rose 2 percent to $495.8 million, compared to $486.0 million recorded in the third quarter of last year. Analysts surveyed by Thomson Reuters were expecting revenue of $498.1 million.

The company said revenues for the quarter include reclassifications of $6.2 million associated with certain shipments involving third-party interline carriers and certain brokerage transactions where its ABF Freight unit retains the primary obligation to provide services to the customer. It said the change had no impact on ABF's operating income.

The trucker said its operating ratio, a measure that compares expenses with revenue, rose during the quarter, reflecting "the effects of a deteriorating freight environment," said Robert A. Davidson, president and chief executive officer.

"During a volatile and uncertain period in domestic and worldwide financial markets, Arkansas Best Corp. remains a stable, progressive company in a strong financial position," Davidson said.

For the first nine months of the year, Arkansas Best said it earned $40.1 million, or $1.59 a share, compared to a profit of $43.3 million, or $1.72 a share, for the same period a year ago. Nine-month revenue rose to $1.44 billion, compared to $1.38 billion a year earlier.