Arkansas Best Corp., Fort Smith, Ark., announced third quarter 2005 net income of $40.6 million, or $1.59 per diluted common share, compared to third quarter 2004 net income of $27.4 million,
or $1.07 per diluted common share.
Excluding an after-tax gain of $9.8 million ($0.38 per diluted common share) related to the July 2005 sale of three non-ABF terminal facilities located in California to G.I. Trucking Co., third quarter 2005 earnings per diluted common share were $1.21. Arkansas Best's after-tax return on capital employed for the 12 months ended Sept. 30, 2005 was 20.6 percent. Arkansas Best's revenue during the third quarter of 2005 was $489.9 million, an increase of 6.1 percent over the third quarter of 2004.
ABF Freight System, Inc., the company's largest subsidiary, had third quarter 2005 revenue of $451.8 million, a per-day increase of 5.6 percent compared to third quarter 2004 revenue of $427.9 million. ABF's third quarter 2005 operating ratio was 88.5 percent versus an operating ratio of 89.2 percent during the third quarter of 2004. Third quarter 2005 operating income at ABF was $52.0 million compared to $46.2 million in the third quarter of 2004, an increase of 12.5 percent.
"ABF generated the highest quarterly operating income in its history and, on a comparable reporting basis, the best quarterly operating ratio in over 25 years," said Robert A. Young III, Arkansas Best chairman and chief executive officer.
"The improvement in ABF's third quarter operating ratio was accomplished because of a combination of good pricing and consistent cost controls," said Young. "Total revenue per hundredweight, excluding fuel surcharge, increased by over one percent, despite a significant shift in profile. ABF's yield and profitability improvement were enhanced by improved yield on larger shipments and increased handling of TimeKeeper shipments, those moving under ABF's guaranteed, expedited and time-definite shipping service. Though TimeKeeper's impact on third quarter results is relatively small, this business is growing rapidly. TimeKeeper's profitability is good and customers find these services quite valuable," said Young.