Boston, MA 05/14/2014 (wallstreetpr) – The trucking company ArcBest Corp (NASDAQ:ARCB) recently underwent a rebranding that saw the company shorten its name from Arkansas Best Corporation to simply ArcBest Corp.
As the rebranding took effect, the company announced a new and aggressive wave of advertisement campaigns to promote the new name that reflects the true scope of the company in terms of its geographical coverage.
However, in addition to the rebranding, the company also expects the reboot to support renewed effort in cost-cuttings. The company intends to identify new cost-cutting opportunities to help it save between $10 and $12 annually.
The company already boasts several cost reduction efforts that include elimination of some terminals. The company announced it closed eight terminals by the end of 2013 and closed another 22 terminals in the first three months of 2014. It, however, intends to undertake more streamlining efforts that should not only support cost reduction and financial savings, but also support growth.
Shareholder value
The financial savings that ArcBest Corp (NASDAQ:ARCB) expects to realize from its renewed cost-cutting efforts are intended to support bigger return to shareholders. The company expects the savings to support higher dividend, stock buyback and future investments to create value for the shareholders. Therefore, that is part of the company’s long-term performance improvement.
Making profit
ArcBest Corp (NASDAQ:ARCB) remains in hot pursuit of profits. The environment of low prices, soft demand for trucking services and a high operating costs have colluded to deny the company a chance to profit. The recent quarter saw the company reporting a loss, though narrower compared with a loss in the year ago quarter despite harsh winter conditions in the latest quarter.
However, a profit is still hard to come by at ArcBest Corp, and the company expects the ongoing streamlining efforts to support improved earnings and possibly profits in the long-term considering that its industry is predicted to experience growth in the next few years.
ArcBest Corp (NASDAQ:ARCB) reported a loss of $5.2 million or $0.20 per share in the recent quarter. That was down from a loss of $13.4 million or $0.52 per share in the same quarter a year earlier.
