Arkansas Best Records $4.88 Million Second Quarter Profit
by August 9, 2013 6:33 am 72 views
With a new labor agreement for its union employees almost done and despite what CEO Judy McReynolds described as “moderate and inconsistent” economic growth, Arkansas Best posted a $4.88 million second quarter profit, nearly one-third of its year ago quarterly profit of $11.84 million, but well ahead of its significant first quarter 2013 loss.
Diluted earnings per share dropped to 18 cents from 44 cents in the previous year’s second quarter. Revenues for the Fort Smith-based trucking giant rose to $576.9 million, up from $510.5 million one year ago.
“We achieved a major milestone for our company in recent weeks with the ratification of a national five-year labor contract at ABF and most supplemental agreements. We expect to obtain employee ratification of all remaining supplements in the coming weeks,” said Arkansas Best President and CEO Judy McReynolds. “Once this important process is concluded, it will represent a pivotal moment for Arkansas Best, as we will be able to turn our undivided attention to driving improved profitability at ABF, while continuing the expansion and growth of our emerging businesses.”
For the first six months of 2013, Arkansas Best remains in the red. The company has recorded a $8.5 million net loss year-to-date because of its first quarter results, which resulted in a $13.4 million net loss.
For months, the company and union leaders have worked to renegotiate a labor contract to make Arkansas Best more competitive with its counterparts.
In late June, Teamsters union members employed by ABF Freight System, Arkansas Best’s largest subsidiary, approved a new five-year contract that will see a wage reduction for drivers through July 2014 and changes in work schedules. Some provisions of the contract were not met with approval and negotiations continue to hammer out final details.
Arkansas Best shares (NASDAQ: ABFS) closed trading Thursday at $19.71. During the past 52 weeks, Arkansas Best’s stock has hovered between a low of $6.43 and a high of $24.00.