Arkansas Best Swings to 2Q Profit
Arkansas Best Corp. posted a second-quarter profit following a first-quarter loss, although net income was lower than the same period last year.
Net income fell to $4.9 million, or 18 cents a share, from $11.8 million, or 44 cents, a year ago, the company reported Friday.
Revenue rose 13% from a year ago to $576.9 million. Arkansas Best had reported a first-quarter loss of $13.4 million.
Operating income at less-than-truckload carrier ABF Freight System, Arkansas Best’s largest business unit, declined to $5.5 million from $7.6 million a year ago.
Second-quarter operating income at its Panther Expedited premium logistics unit jumped to $1.5 million from $480,000 a year ago.
ABF and the Teamsters union reached agreement on a new five-year labor contract in June and have since extended their existing contract several times — most recently through the end of August — pending final ratification of several supplemental agreements.
Once the new contract is implemented, the combined effect of immediate cost reductions and lower cost increases “should put ABF on a path to improved financial performance,” the company said.
Arkansas Best Corp. is ranked No. 12 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers.
