Arkansas Best today reported a net loss of $13.4 million in the first quarter of 2013, improving from a net loss of $18.2 million in the first quarter of 2012.
Quarterly revenue was $520.7 million, compared with $440.9 million in the same quarter last year.
Last year’s first quarter results included effects of an “unusually low” corporate tax benefit rate and “unusually high” workers’ compensation claims costs, the freight transportation company said in a written statement. Year-over-year revenue and tonnage gains this year at less-than-truckload carrier ABF Freight System — which placed sixth in JOC’s ranking of the Top 25 LTL Carriers for 2012 — were offset by higher wage and benefit costs for employees represented by the International Brotherhood of Teamsters.
“First quarter revenue and operating income at our emerging businesses reflected growth and improvement as we invested heavily in these businesses during 2012,” said Judy R. McReynolds, Arkansas Best’s president and CEO. “They represent a critical piece of Arkansas Best's strategy to achieve sustained profitability.”
“After months of hard work and a second extension of contract talks through May 31, the negotiating teams continue to make progress on developing a contract agreement for our Teamsters-represented employees that is expected to provide ABF greater operational flexibility and lower costs in order to effectively compete in the future,” McReynolds added.