ABF Reports Increased Revenue, Higher Earnings

Arkansas Best Corp., Fort Smith, Ark., announced second quarter 2005 net income of $23.4 million, or $0.91 per diluted common share, compared to second quarter 2004 net income of $19.3 million

, or $0.76 per diluted common share. Arkansas
Best's second quarter 2005 revenue was $456.7 million compared to $424.5 million in the second quarter of 2004.
LTL carrier ABF Freight System, Inc., the company's largest subsidiary, had second quarter 2005 revenues of $417.5 million, a per-day increase of 6.8% over second quarter 2004 revenue of $391.0 million. Second quarter 2005 operating income at ABF was $38.1 million compared to $32.8 million during the second quarter of 2004, an increase of 16.2%. ABF's second quarter 2005 operating ratio was 90.9% versus an operating ratio of 91.6% in the second quarter of 2004.
"ABF increased its revenues and improved its operating margins in the second quarter of 2005 through balanced yield improvement and cost reductions. Although we did not have the strong tonnage growth that we had in the second quarter of 2004, our operating ratio and profits were better," said Robert A. Young III,
Arkansas Best Chairman and Chief Executive Officer.
"Several areas contributed to the improvement in ABF's second quarter operating ratio versus last year. LTL and truckload revenue yields, excluding fuel surcharge, increased by over three percent. ABF continues to emphasize the addition of profitable business and remains committed to maintaining a good balance between tonnage growth and overall profitability," said Mr. Young. "On the cost side, ABF reduced its use of rail by moving a higher percentage of freight with ABF drivers and equipment. In many of the lanes where ABF discontinued using rail, we improved transit-time reliability and reduced costs.