Arkansas Best Corp. Reports Loss, Seeks End to Teamsters Talk

by Chris Bahn and Lance Turner  on Wednesday, Jan. 30, 2013 11:47 am  

Despite the losses, CEO Judy McReynolds says she's encouraged by trends she sees in the company's expedited and premium logistics services businesses.

4Q, Yearly Losses

Arkansas Best's fourth-quarter net loss of $7.9 million, or 31 cents per share, came after profit of $1.4 million, or 5 cents per share, during the same quarter last year.

The company said the loss came amid "generally flat," year-over-year revenue, tonnage and pricing at its ABF Freight unit were offset by higher costs. For the quarter, revenue was rose slightly to $537 million from $463.2 million during the same quarter last year.

It noted that in the same period, its non-asset-based businesses, including freight brokerage and vehicle roadside and preventative maintenance, were profitable and posted higher revenue.

"We are pleased with revenue growth and improving profitability at our emerging businesses as they added up to more than 20 percent of our total company fourth quarter revenue," McReynolds said in a news release. 

"Expanding our portfolio of expedited and premium logistics services was a major initiative in 2012 as our customers' supply chains grow ever more complex. We are encouraged by the trends we have seen in these businesses," she said. "Among other things, we added key sales and customer service personnel and invested in service-enhancing technologies, all of which were well- received in the marketplace."

Quarterly results include an after-tax charge of $2.4 million, or 9 cents per share, related to an actuarial adjustment to ABF’s workers’ compensation expense. 

For full year of 2012, Arkansas Best had a net loss of $7.7 million, 31 cents per share, including the workers' compensation expense increase. This compares to profit of $6.2 million, or 23 cents per share, in 2011. 

Arkansas Best's full year revenue was $2.1 billion compared to revenue of $1.9 billion in 2011. 

 

 

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