Saturday, October 29, 2011

ABF Announces Third Quarter 2011 Results

Arkansas Best Corporation today announced third quarter 2011 net income of $12.3 million, or $0.46 per share, compared to a net loss of $0.7 million, or $0.03 per share in the third quarter of 2010.

Arkansas Best’s third quarter 2011 performance reflects strong improvement from its largest subsidiary, ABF Freight System, Inc. ABF produced healthy revenue and profit growth that resulted from improved account pricing in the midst of moderating tonnage levels. ABF improved its third quarter operating ratio by four and a half operating points versus the same period last year and by over two operating points versus this year’s second quarter.

“We are pleased to report another quarter of profitability resulting from the value and superior service that ABF offers in the marketplace. The ABF team is to be congratulated for producing better results in the face of an uncertain economic environment,” said Judy R. McReynolds, Arkansas Best President and Chief Executive Officer. “In looking ahead, we are prepared to appropriately adjust resources to business levels while maintaining a high level of service for our customers. Our blend of investments in people and technology as well as the unique logistics services provided to our customers put us in a good position as we cultivate opportunities for future growth and new offerings.”

Arkansas Best Corporation

Third Quarter 2011

Revenue of $510.9 million, a per day increase of 14.7% from the prior year third quarter revenue of $445.5 million

Net income of $0.46 per share compared to a net loss of $0.03 per share in the prior year third quarter

Includes market losses on the cash surrender value of life insurance of $0.05 per share compared to gains of $0.06 per share in the prior year period

ABF Freight System, Inc.

Third Quarter 2011

Revenue of $466.3 million compared to $409.9 million in third quarter 2010, a per-day increase of 13.8%

Tonnage per day decrease of 2.0% versus third quarter 2010

Total billed revenue per hundredweight of $27.10 compared to $23.38 in third quarter 2010, an increase of 15.9%, including increases in fuel surcharge

Operating income of $18.3 million compared to an operating loss of $2.6 million in third quarter 2010

Operating ratio of 96.1% compared to 100.6% in third quarter 2010

“Since March of this year, ABF’s year-over-year change in monthly tonnage has moderated, and beginning in August, tonnage has been below that of the same period last year. So far in October, ABF’s tonnage is lower than last October by between six and seven percent, but because of greatly improved yields, ABF revenues continue to be ahead of the same period last year by approximately 5%. We attribute the tonnage decline to weakening economic conditions, our efforts to improve account pricing and more difficult comparisons from last year,” said Ms. McReynolds. “Despite the softening in ABF’s freight, our pricing levels have improved significantly from recent recessionary levels. We constantly strive to grow ABF’s business with accounts that value our wide range of services. As a result, ABF’s overall group of accounts offers a better mix of business with yields that have contributed to the improved profitability we’ve experienced during the last two quarters.”

“ABF continues to focus on making investments in resources and personnel that strengthen the positive experience of our customers while improving our operational efficiencies,” said Ms. McReynolds. “In the third quarter, ABF and its exceptional employees were recognized and honored by three national publications, twice for excellence in information technology and once for ABF’s commitment to sustainability. Two ABF drivers achieved recognition for superior driving achievements, one as a national driving champion. Earlier this month, ABF earned the American Trucking Associations’ Excellence in Security Award for the sixth time of the 11 times it has been awarded,” said Ms. McReynolds. “As we move forward, we will continue to build on the strong foundation provided by ABF’s nationwide network and the relationship-forming skills of its well-trained sales force to offer additional services and to take advantage of new growth opportunities.”

NASDAQ Panel Grants YRC Worldwide's Request for Continued Listing

YRC Worldwide Inc. today announced that the company received a positive determination from the NASDAQ Hearings Panel (the "Panel") indicating that the Panel had granted the company's request to remain listed on The NASDAQ Stock Market.

In its decision, the Panel indicated that it had determined to exercise its discretionary authority to apply NASDAQ's financial viability exception retroactively to the company based upon the particular facts and circumstances and to continue the company's listing on NASDAQ, subject to certain conditions. In accordance with the terms of the Panel's decision, on or before December 31, 2011, the company must implement a reverse stock split and demonstrate a closing bid price for its common stock above $1.00 per share for a minimum of ten consecutive trading days.

The company must also be able to demonstrate compliance with all requirements for continued listing on NASDAQ. The company is seeking stockholder approval of a reverse stock split at its annual meeting of stockholders scheduled to be held November 30, 2011, with the ratio and timing of implementation of the reverse stock split at the discretion of the company's board of directors if the reverse stock split is approved by stockholders.

"We are very pleased with the NASDAQ Hearings Panel's decision and the positive news it means for YRC Worldwide," said James Welch, chief executive officer - YRC Worldwide. "As we continue to move our company forward, we remain focused on our number one priority — providing our customers with reliable transportation solutions."

"We truly value our long-term relationship with NASDAQ and we look forward to continuing to be a part of this important Exchange," said Jamie Pierson, interim chief financial officer - YRC Worldwide.

As previously disclosed, the company appealed the NASDAQ Listing Qualifications Staff's determinations that the company's common stock should be delisted from NASDAQ because the company had issued certain securities in connection with the restructuring consummated on July 22, 2011 in violation of the NASDAQ Listing Rules, such issuance had raised public interest concerns, and the company's common stock had traded below the minimum bid price threshold of $1.00 per share for 30 consecutive business days.

Teamsters Call on Obama To Move Forward on HOS

The Teamsters union and highway safety advocates have asked President Obama to "expeditiously more forward" on the new hours of service rule proposed by the Federal Motor Carrier Safety Administration.

Citing statistics on truck crashes that they said cost the nation $20 billion in 2009, the labor and safety advocates said in an Oct. 7 letter to Obama that the proposed reduction in driver hours "addresses a serious and deadly public health and safety problem" in trucking.

Studies by the National Transportation Safety Board, the Insurance Institute for Highway Safety and other research groups show that "truck driver fatigue is a major factor in truck crashes," the letter said. Full Story....

Wednesday, October 26, 2011

YRC revamps sales, operations structure

Move marks first major organizational change under new president

Less-than-truckload carrier YRC Worldwide Inc. has reorganized its top sales, marketing, and operational workforces in the first major realignment under new president Jeff Rogers.

Under the reorganization, YRC is consolidating its divisions from four regions to two, according to an internal memo issued Monday by Rogers. The West division will cover the Western half of the United States, up to and including Dallas, Kansas City, and Chicago. The East division will cover the remainder. Full Story.....

Tuesday, October 25, 2011

UPS Earnings Per Share Rise 14 Percent on 8 Percent Revenue Growth in 3Q

U.S. Domestic and Supply Chain & Freight Lead the Way; Free Cash Flow Exceeds $3.7 Billion

UPS today announced diluted earnings per share of $1.06 for the third quarter of 2011, a 14% improvement over the adjusted $0.93 for the prior-year period. Total revenue increased 8% to $13.2 billion.

The results were driven by the U.S. Domestic and Supply Chain & Freight segments. U.S. Domestic operating margin improved to 13.1% compared to last year's adjusted results and Supply Chain and Freight operating profit increased more than 10%. Free cash flow for the first nine months of the year was strong, exceeding $3.7 billion. Full Story...

Nearly 20 Years After NAFTA, First Mexican Truck Arrives In U.S. Interior

Nearly two decades after the passage of the North American Free Trade Agreement, the first Mexican truck ventured into the U.S. under provisions of the controversial treaty.

With little fanfare, a white tractor-trailer with Mexican license plates entered the courtyard of the Atlas Copco facility in Garland, Texas on Saturday afternoon to unload a Mexico-manufactured metal structure for drilling oil wells.

The delivery marked the first time that a truck from Mexico reached the U.S. interior under the 17-year-old trade agreement, which was supposed to give trucks from the neighboring countries access to highways on both sides of the border. Full Story...