Arkansas Best Corp., Fort Smith, Ark., announced second quarter 2008 net income of $16.2 million, or $0.64 per diluted common share, compared to second quarter 2007 net income of $19.6 million, or $0.78 per diluted common share.


Arkansas Best's year-to-date 2008 net income was $0.98 per diluted common share, slightly above the $0.97 per diluted common share earned during the same period last year. Arkansas Best's second quarter 2008 revenue was $498.5 million, a 6.7% per-day increase over second quarter 2007 revenue of $463.7 million. On a year-to-date basis, Arkansas Best's 2008 revenue was $946.0 million, an increase of $54.5 million over the year-to-date 2007 revenue of $891.5 million.

ABF Freight System, the company's largest subsidiary, had second quarter 2008 revenue of $479.5 million, a per-day increase of 6.1% over second quarter 2007. Second quarter 2008 operating income at ABF was $25.5 million compared to $30.5 million during the second quarter of 2007. ABF's second quarter 2008 operating ratio was 94.7% versus an operating ratio of 93.2% in the second quarter of 2007.

"We are disappointed by a 150 basis point increase in ABF's operating ratio, although this may be typical of or better than industry results," said Robert A. Davidson, Arkansas Best president and CEO. "On a year-to-date basis, Arkansas Best's net income and ABF's operating ratio are comparable with last year."

ABF's second quarter operating results were affected by cost increases in two areas. Diesel fuel and other fuel-related expenses throughout the ABF network were materially higher than in 2007. In addition, although 2008 second quarter workers' compensation costs were consistent with the 10-year historical average, they were higher than the very favorable experience last year and increased the operating ratio by nearly one-half of a percentage point. On a year-to-date basis, workers' compensation costs are well below the ten-year historical average.

ABF's second quarter 2008 total weight per day was flat compared to the same period last year. "Beginning with the fourth quarter of 2007, the trend of ABF's year-over-year quarterly tonnage changes has steadily improved, though in very small increments. Essentially there has been little change in the overall freight environment during that nine-month period," said Davidson. "Though this economic decline has not been as deep as others in the past, it appears to be lasting longer. As a result, ABF will continue to carefully manage labor costs and equipment levels to match available freight in our system until economic conditions show meaningful improvement."

"ABF's expansion of its enhanced regional service will continue later this month and should be fully in place throughout the eastern two-thirds of the United States by the end of August. As previously mentioned, this will result in additional transit-time improvements in tens of thousands of new regional lanes and in many of ABF's traditional, longer lanes," said Davidson. "Over the past 18 months, ABF has made substantial improvements in its regional service through the establishment of the required regional network. The changes taking place over the next two months will take advantage of this infrastructure and will provide dramatically faster transit times, allowing us to make further progress in effectively serving this important market."