Arkansas Best: Lower Freight Levels Behind 3Q Loss

FORT SMITH, Ark. (AP) — Trucking holding company Arkansas Best Corp. on Wednesday said falling freight levels and tough pricing competition led to a loss in the third quarter.

Quarterly loss totaled $5.6 million, or 23 cents per share, compared with a profit of $15.4 million, or 60 cents per share, in the same period last year. Analysts polled by Thomson Reuters, on average, expected a larger loss of 36 cents per share.

Revenue fell 20 percent to $399 million from $495.8 million. Analysts predicted revenue of $382.4 million.

"Our third quarter results reflect the on-going impact of lower freight levels and competitive industry pricing that deteriorated further compared to the first half of the year," said CEO Robert A. Davidson in a statement.

He said it is the fourth year of a "severe" freight decline and it is unclear when the pickup in the economy will help the freight industry.

Separately, Davidson, 61, said he is retiring in January and will be replaced by CFO Judy R. McReynolds.