Arkansas Best Corporation Announces Results

Arkansas Best Corporation announced third quarter 2007 net income of $18.9 million, or $0.75 per diluted common share, compared to third quarter2006 net income of $31.5 million, or $1.24 per diluted common share.

Arkansas Best's third quarter 2007 revenue was $479.8 million compared to third quarter 2006 revenue of $507.3 million.

ABF Freight System, Inc., the company's largest subsidiary, had third quarter 2007 revenue of $462.2 million, a per-day decrease of 6.4% from third quarter 2006. Third quarter 2007 operating income at ABF was $28.5million compared to $49.4 million during the third quarter of 2006. ABF's third quarter 2007 operating ratio was 93.8% versus an operating ratio of90.0% in the third quarter of 2006.

"Our third quarter profitability was influenced by several factors," said Robert. Davidson, president. ABF's operating margins continue to be impacted by the effects of lower tonnage levels. In addition, as in previous quarters, the costs associated with investment in ABF's RPM initiative added about a percentage point to ABF's third quarter operating ratio. Finally, higher costs associated with workers' compensation claims, offset in part by some improvement in third-party casualty claims, added almost a point. However, it is important to note that because of lower workers' compensation and third-party casualty expenses in the first half of the year, these year-to-date costs are in line with the same period last year and with historical averages."

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