Arkansas Best profit drops 17.6 percent, misses analyst view

President and Chief Executive Robert A. Davidson said ABF will manage its labor costs and equipment levels until the economy improves.

The Associated Press

7/24/2008

FORT SMITH, Ark. — Trucking company Arkansas Best Corp. on Wednesday said its second-quarter profit dropped 17.6 percent on increased expenses for fuel and worker’s compensation insurance. The results missed analyst expectations and its shares dropped almost 15 percent.

Arkansas Best said it earned $16.16 million, or 64 cents per share, in the three months ended June 30, down from $19.62 billion, or 78 cents per share, during the same period last year. Revenue for the quarter rose 7.5 percent to $498.5 million from $463.7 million a year ago.

Analysts surveyed by Thomson Financial were expecting a profit of 75 cents per share on revenue of $481 million.

Its largest segment, ABF Freight System Inc., had operating income of $25.5 million, down from $30.5 million during the same period a year ago.

President and Chief Executive Robert A. Davidson said ABF will manage its labor costs and equipment levels until the economy improves.

“Though this economic decline has not been as deep as others in the past, it appears to be lasting longer,” he said.