Arkansas Best Reports Profitable 4Q, Fiscal Year
by January 27, 2012 10:56 am 70 views
Arkansas Best Corp. reversed the losses it sustained in 2010’s fourth quarter and fiscal year, the company reported Friday before the markets opened.
The Fort Smith-based holding company reported earnings of $1.4 million, or 5 cents per share, for the quarter that ended Dec. 31. That’s a 55 percent improvement from a loss of $3.12 million, or 12 cents per share, in the same period in 2010.
Still, the company missed the average earnings estimate of 24 cents per share from 18 analysts surveyed by Thomson Reuters.
Total revenue rose 5 percent to $463.24 million from $441.1 million a year earlier.
ABF Freight System Inc., the company’s largest subsidiary, accounts for more than 90 percent of Arkansas Best’s revenue.
For the year, Arkansas Best posted net earnings of $6.33 million, or 23 cents per share, compared to a loss of $32.42 million, or $1.30 per share, the previous year. Total revenue rose 15.1 percent to $1.91 billion.
The positive results for the quarter and year reflect an improving business environment, president and CEO Judy McReynolds said in a news release. The company saw revenue growth in each of its operating segments, she said.
“The transportation industry is facing a number of challenges that will likely reduce the amount of capacity available to serve the marketplace,” McReynolds said. “Because of the stability of our work force and the capabilities we offer, our companies are well positioned to serve our customers in 2012 and in future years.”
Earlier this week, the company’s board of directors declared a quarterly cash dividend of 3 cents per share to holders of record of its common stock on Feb. 8. The dividend will be payable Feb. 22.
In mid-morning trading Friday on the Nasdaq, shares were at $18.95, down 15.78 percent or $3.55 per share from the previous day’s close. The company’s stock has traded between $14.22 and $27.44 in the past year.