U.S. trucking company Arkansas Best Corp. swung to a surprise fourth-quarter loss and said it slashed about 1,100 jobs in the period as the U.S recession brought "unprecedented weakness" to its business, pushing down both freight volumes and prices.
"We are now over 27 months into a freight recession that is the worst I have seen during my 37 years in this industry," Chief Executive Robert Davidson said in a release.
The Ft. Smith, Arkansas-based company reported a quarterly net loss of $11 million, or 44 cents per share, compared with net income of $13.5 million, or 54 cents per share, in the year-ago period.
Conditions have been tough for U.S. trucking companies since the third quarter of 2006. Falling auto sales, lackluster retail sales and a slumping housing market have choked off demand for trucking services.
According to investment banking firm Avondale Partners, 3,065 trucking firms filed for bankruptcy in 2008, compared with less than 2,000 in 2007. The highest annual bankruptcy rate so far came during the last U.S. recession in 2001, when 3,990 truck firms went under. Full Story......
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