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Topic: Daily Advice

Stock market trading: Arkansas-Best reports narrower loss in 2010

Arkansas Best Corp. (symbol ABFS on Nasdaq) specializes in “less-than-truckload” shipping, which involves loading freight from a number of customers onto a single truck.

In 2010, Arkansas Best’s revenue rose 12.6%, to $1.7 billion from $1.5 billion on 2009. The company lost $32.7 million, or $1.30 per share, in 2010. However, that was a big improvement on the $127.5 million, or $2.46 per share, that it lost in 2009.

Arkansas-Best shipped more freight as the economy gradually recovered in 2010, particularly during the fourth quarter. Strong competition has been keeping shipping rates down, however. Arkansas-Best is now raising its rates to cover rising fuel costs.

The company holds cash of $141.9 million. Arkansas-Best plans to spend $47 million this year to replace aging equipment with 35 new tractors and 400 trailers.

Arkansas-Best trades 40.1 times the $0.60 a share it is expected to earn in 2011.

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