ABF FREIGHT SYSTEM DOUBLES OPERATING INCOME
Arkansas Best Corp., parent company of national less-than-truckload carrier ABF Freight System, reported a first-quarter loss of $734,000, which included a $9 million refinancing charge.
ABF Freight System, the company's largest subsidiary, said its operating income of $11.1 million, which compared to $5.5 million during the first quarter of 2002, was limited by bad weather and workmen's compensation costs. The company said it lost about $2 million in revenue because it had to shut down terminals during severe February storms.
The unionized carrier collected $324.2 million in revenue, up 12.3 percent from the year-earlier period. ABF attributed much of its revenue increase to business it picked up after Consolidated Freightways folded last September.
LTL tonnage remained soft, increasing 2.7 percent to 639,000 tons. Normally the company expects a 4.3-percent increase in volume, but said higher rates have bolstered revenues during weak economic times.
Overall the motor carrier improved its operating ratio to 96.6 percent from 98.1 percent in the first quarter of 2002. The ratio of operating expenses to revenue is key measure of a carrier's performance and profitability.