Arkansas Best Shares Tumble On Steep 1Q Loss

FORT SMITH, Ark. (AP) — Shares of trucking company Arkansas Best Corp. tumbled Wednesday after the trucking company said it posted an $18.2 million first-quarter loss, citing the weak economy and resulting drop in freight levels.

In morning trading, Arkansas Best shares fell 51 cents, or 2.2 percent, to $22.24 after plunging as low as $20.08 after the market opened.

Arkansas Best's loss amounted to 73 cents per share, compared with a first-quarter 2008 profit of $8.5 million, or 34 cents per share. Operating revenue fell 24 percent to $339.7 million from $447.5 million.

Analysts polled by Thomson Reuters expected a loss of 39 cents per share on $360.8 million in revenue.

"Our first quarter results continue to be hurt by the poor economy and the resulting decline in profitable business," Robert A. Davidson, the company's president and chief executive, said in a statement. "(Arkansas Best's) first quarter results reflect significantly lower freight levels, a very competitive industry pricing environment and our efforts to maintain a high level of customer service."

Tonnage per-day at the company's ABF Freight System business fell 16 percent, while total billed revenue per hundredweight of dropped 9.4 percent to $23.85. Operating ratio rose to 108.3 percent from 97 percent in the 2008 quarter.