In the wake of significant losses, Arkansas Best sees a key leader leave, a financial post remain unfilled, and a management reorganization aimed at righting its ship.
More key Arkansas Best Corp. management changes within the past six months were announced late Tuesday, and appear to be caused by the resignation of Chris Baltz, the former senior vice president of yield management and strategic development for the transportation holding company.
The management moves appear to show the troubled trucking company shifting corporate responsibilities rather than replacing Baltz. All told, three executives assumed new titles and duties to fill Baltz’s departure.
Since it was announced last October 2009 that then-Chief Financial Officer Judy McReynolds would take the helm as CEO on Dec. 31, the company has yet to find a new CFO.
On April 23, Fort Smith-based Arkansas Best reported that it lost $21.4 million in the first quarter of 2010, and a recent internal memo to company employees suggests more difficult times are ahead for the trucking company. The company burned through $10 million of its cash reserves during the first quarter of 2010.
Arkansas Best, which employs about 9,500 nationwide, posted a 2009 net income loss of $127.52 million, compared to a $29.168 million gain in 2008. However, the 2009 income loss includes a non-cash accounting charge of $64 million for the impairment of goodwill. Total revenue in 2009 was $1.472 billion, a 19.6% dip from 2008 revenue of $1.833 billion.
Michael Tilley with our content partner, The City Wire, has more in this report.