Arkansas Best Corp. has announced fourth quarter 2002 net income of $14.5 million, or $0.57 per diluted common share, compared to fourth-quarter 2001 net income of $9.5 million, or $0.38 per diluted common share.

The fourth quarter figures for 2001 included a non-recurring tax benefit of about $1.9 million ($0.08 per diluted common share) resulting from the resolution of certain tax contingencies originating in prior years.
For the full year of 2002, the company reported income of $40.8 million, or $1.60 per diluted common share (net income of $16.8 million, or $0.66 per diluted common share after an accounting change) versus 2001 net income of $41.4 million, or $1.66 per diluted common share.
"Arkansas Best's solid performance during 2002 validated its position as the company with the strongest financial position in the long-haul, LTL industry," said Robert A. Young III, Arkansas Best president and chief executive officer.
"ABF continued to produce good results with a fourth quarter operating ratio of 92.2%," said Young.
ABF's fourth quarter 2002 revenue was $344.9 million compared to $302.0 million in the fourth quarter of 2001. ABF's operating income during current quarter was $27.1 million compared to $16.5 million in the same period last year.
"In an environment where a major competitor goes out of business, ABF's profitability and strong financial position have been advantages in the marketplace," said Young. "It has been difficult to distinguish the exact amount of business ABF has obtained directly from the CF closure," said Young. "Additional factors, including the economic environment and the settlement of the longshoremen's West Coast labor dispute, also impacted ABF's fourth quarter tonnage levels. When business levels increase with customers ABF had prior to CF's closure, it is impossible to know which factor caused the change. Some of the additional freight that can be identified as coming from CF is not as profitable as ABF's average business," he said.
"However, this business has contributed positively to ABF's margins because of the operating leverage that was available throughout the ABF network. As usual, pricing on accounts identified with less-than-acceptable margins is currently being addressed. During the fourth quarter, ABF had better success in securing price increases and retaining this business."
Arkansas Best Corp., headquartered in Fort Smith, Ark., is a diversified transportation holding company with two primary operating subsidiaries. ABF Freight System Inc., in continuous service since 1923, provides national transportation of less-than-truckload general commodities throughout North America.