Arkansas Best Records 2Q Profit But Says High Labor Costs Still Hurt

by Lance Turner and Chris Bahn  on Friday, Aug. 9, 2013 7:14 am  

Arkansas Best Corp. headquarters in Fort Smith.

"Once this important process is concluded, it will represent a pivotal moment for Arkansas Best, as we will be able to turn our undivided attention to driving improved profitability at ABF, while continuing the expansion and growth of our emerging businesses," McReynolds said in a news release. "As our customers look to us for total solutions to their complex supply chain needs, we are now better positioned than at any time in our history to fulfill those requirements."

Recently the company announced internally the formation of ABF Logistics, an operating segment that will house intermodal and global shipping business and supply chain operations. McReynolds said the move allows for "a strategic reallocation of strong sales talent" into ABF Logistics and will allow "us to more effectively unleash the growth potential in each of these service offerings."

"We're exctied about the recent changes," McReynolds said.

Non-asset based operations within the company generated 23-percent of Arkansas Best revenue during the second quarter. All four of those businesses reported increased income.

Freight brokerage led the emerging businesses in revenue gains, with a 63-percent increase. Preventative maintenance saw a nine-percent revenue jump and almost 17-percent operating income boost for emergency and preventative maintenance operations. 

"As we turn our undivided attention to restoring ABF's profitability and growing our emerging businesses with the right investment in resources and talent, we are now better positioned than at any time in our history to meet the end-to-end solutions needs of our customers," McReynolds said. "While the U.S. ecomonic outlook remains OK, but not great, we know that serving our customers in even better ways, with the right products and services, is the key to our company's success."



Please read our comments policy before commenting.