ABF Loses $14 Million

ABF Freight suffered an operating loss of $14 million in the third quarter, which was an improvement on the loss of $25 million in the second quarter. Parent company Arkansas Best Corporation reported a net loss of $5.6 million in the third quarter, compared to net income of $15.4 million a year ago. The company’s chief executive officer Robert A. Davidson announced he will retire at the end of the year, to be succeeded by Judy R. McReynolds.

"Our third quarter results reflect the on-going impact of lower freight levels and competitive industry pricing that deteriorated further compared to the first half of the year," said Davidson.

"We are now entering the fourth year of a severe freight decline that is unprecedented in our company's history. It is unclear when business levels will benefit from a significant improvement in our nation's economy. In the meantime, our company's emphasis will remain on providing a high level of value-added service to our customers while managing our business, for the long-term, through diligent cost control and disciplined pricing,” Davidson said.

Davidson announced his retirement, effective Dec. 31. He is resigning from the board of directors as well as from his position as chief executive officer. Judy R. McReynolds, current senior vice president, chief financial officer and treasurer, will become Arkansas Best's president and chief executive officer on Jan. 1, 2010. She was also named to the board of directors, effective Jan. 1.

Revenue of $399 million in the third quarter was a per day decrease of 19.5 percent from the prior year quarter revenue of $495.8 million.

ABF Freight System, the chief LTL subsidiary, generated revenue of $369.8 million compared to $476.3 million in third quarter of 2008, a per-day decrease of 22.4 percent, the company said. Tonnage per day decreased 10.1 percent compared with third quarter of 2008. ABF had an operating loss of $14 million compared to operating income of $25.2 million in third quarter of 2008.

"The smaller decline in ABF's third quarter tonnage implies an improving freight environment compared to the first half of the year. However, this year-over-year trend is primarily related to comparisons back to last year's third quarter when business levels fell sharply,” Davidson said.

Contact Thomas L. Gallagher at tgallagher@joc.com.