Arkansas Best Narrows 1Q Loss
by April 30, 2013 11:54 am 89 views
Arkansas Best Corp. said Tuesday higher wage and benefit costs for workers represented by the International Brotherhood of Teamsters offset first-quarter revenue and tonnage growth.
Reporting before the market opened, the Fort Smith-based holding company posted a net loss of $13.4 million, or 52 cents per share, for the quarter that ended March 31. That was an improvement over a net loss of $18.16 million, or 71 cents per share, in the same period a year ago.
Sixteen analysts surveyed by Thomson Reuters had forecast an average estimated loss of 41 cents per share.
Revenue rose 18.11 percent to $520.69 million.
ABF Freight System Inc., the company’s largest subsidiary, accounts for more than 90 percent of Arkansas Best’s revenue. ABF’s operations lost $22.55 million in the quarter, compared to a $21.86 million loss in the same quarter last year.
Judy McReynolds, Arkansas Best’s president and CEO, said in a news release that despite continued strengthening of Arkansas Best’s emerging, non-asset-based businesses, high labor costs are weighing on results, “underscoring the need for a more rational labor agreement that reflects the increasingly competitive [less-than-truckload] industry.
“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 Teamster-represented employees that is expected to provide ABF greater operational flexibility and lower costs in order to effectively compete in the future,” she said in the release.
Negotiations between ABF and the Teamsters began Dec. 18, taking place largely in Kansas City, Mo., and more recently in Dallas. The union represents about 7,500 of Arkansas Best’s 9,900 full-time employees.
On April 23, Arkansas Best declared a quarterly cash dividend of 3 cents per share to holders of record of its common stock on May 7, payable May 21.
Shares were trading at $11.30 at late morning Tuesday on the Nasdaq, down 25 cents or 2.13 percent. The company’s stock has traded between $6.43 and $16.18 in the past year.