The bad news for Arkansas Best Corp. is net income declined in the third quarter. The good news is the Fort Smith-based trucking giant remains in the black.
Arkansas Best reported third quarter profits of $6.5 million on rising revenue of $577.55 million despite “weakness in the economy,” according to its CEO. One year ago, Arkansas Best posted a $12.27 million quarterly profit on revenue of $510.89 million.
“Arkansas Best’s results reflect weakness in the economy that contributed to reduced customer business levels and lower profitability at ABF. The slowing business environment also reduced the demand for expedited services at Panther,” said Arkansas Best President and CEO Judy R. McReynolds. “However, at our emerging non-asset-based companies, we are encouraged by the continuation of strong revenue and improving profitability trends in the midst of a tenuous economy.”
McReynolds said that negotiations with the company’s labor union would be pivotal to controlling expenses in its trucking operation, ABF. She also emphasized that its newly acquired logistics division, Panther Services, would be beneficial to the firm’s diversification of its revenues in the long-run despite a sluggish start.
“The uncertain economic environment has impacted our recent performance and presents challenges in the near term,” said McReynolds. “However, we believe our company is better equipped for future success because of the combination of logistics services we now offer the marketplace. As we seek to reduce ABF’s cost structure as well as improve the flexibility of its network, the additional resources available within our company provide opportunities for solidifying existing customer relationships and gaining new business.”
Talk Business will update this story later today.