ArcBest (ARCB) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

ARKANSAS BEST CORPORATION
ANNOUNCES THIRD QUARTER EARNINGS,
EXCLUDING PROPERTY GAINS, OF $1.21 PER SHARE;
ABF^Ò’s OPERATING RATIO IS 88.5%

     (Fort Smith, Arkansas, October 24, 2005) — Arkansas Best Corporation (Nasdaq: ABFS) today announced third quarter 2005 net income of $40.6 million, or $1.59 per diluted common share, compared to third quarter 2004 net income of $27.4 million, or $1.07 per diluted common share. Excluding an after-tax gain of $9.8 million ($0.38 per diluted common share) related to the July 2005 sale of three non-ABF terminal facilities located in California to G.I. Trucking Company, third quarter 2005 earnings per diluted common share were $1.21. Arkansas Best’s after-tax return on capital employed for the twelve months ended September 30, 2005 was 20.6%. Arkansas Best’s revenue during the third quarter of 2005 was $489.9 million, an increase of 6.1% over the third quarter of 2004.

ABF Freight System, Inc.^®

     ABF Freight System, Inc., the company’s largest subsidiary, had third quarter 2005 revenue of $451.8 million, a per-day increase of 5.6% compared to third quarter 2004 revenue of $427.9 million. ABF’s third quarter 2005 operating ratio was 88.5% versus an operating ratio of 89.2% during the third quarter of 2004. Third quarter 2005 operating income at ABF was $52.0 million compared to $46.2 million in the third quarter of 2004, an increase of 12.5%. “ABF generated the highest quarterly operating income in its history and, on a comparable reporting basis, the best quarterly operating ratio in over twenty-five years,” said Robert A. Young III, Arkansas Best Chairman and Chief Executive Officer.

     “The improvement in ABF’s third quarter operating ratio was accomplished because of a combination of good pricing and consistent cost controls,” said Mr. Young. “Total revenue per hundredweight, excluding fuel surcharge, increased by over one percent, despite a significant shift in profile. ABF’s yield and profitability improvement were enhanced by improved yield on

larger shipments and increased handling of TimeKeeper^® shipments, those moving under ABF’s guaranteed, expedited and time-definite shipping service. Though TimeKeeper’s impact on third quarter results is relatively small, this business is growing rapidly. TimeKeeper’s profitability is good and customers find these services quite valuable,” said Mr. Young. “ABF’s LTL tonnage was below the strong levels experienced in the third quarter of 2004, yet ABF was able to manage its variable costs in order to maximize the profitability of the shipments moving through its network. ABF’s profitability improved as a result of reducing the use of rail in higher-cost lanes and the associated drayage and equipment shuttles. ABF used fewer local cartage agents for shipment pickup and delivery and reduced employee overtime. In addition, ABF’s third quarter workers’ compensation costs declined by $1.7 million because of fewer new claims and favorable severity trends on existing claims. However, casualty claims costs increased by $1.6 million as a result of adverse severity trends on existing claims. ABF’s third quarter cargo claims costs declined from last year by $567,000.”

     ABF’s total tonnage per day in the third quarter of 2005 was down slightly versus a year ago, decreasing by 0.4%. Compared to the same periods last year, LTL tonnage per day decreased 6.3% in June 2005; 5.6% in July 2005; 2.9% in August 2005 and 0.7% in September 2005. Overall, third quarter 2005 LTL tonnage per day decreased 3.0% compared to third quarter 2004. “Though third quarter 2005 LTL tonnage was below that of last year’s very strong third quarter, I am encouraged by the significantly improving trends in the LTL tonnage comparisons over the last few months,” said Mr. Young.

     ABF’s 2005 third quarter truckload tonnage per day increased by 10.1%, including an increase of 15.6% in September. “For the last two years, ABF has experienced strong growth in truckload tonnage and this year’s third quarter is no exception,” said Mr. Young. “As long as ABF is able to earn comparable profit margins on these shipments and service on its core LTL business is not adversely affected, ABF will continue to pursue these larger shipments in order to fill available capacity.” Through the first twenty days of October, average daily tonnage figures in ABF’s total business are slightly ahead of the same period last year.

     Total billed revenue per hundredweight was $24.43 compared to $22.84 in the third quarter of 2004. Total billed revenue per hundredweight, excluding fuel surcharge, increased by 1.2%. “ABF continues to secure reasonable price increases in a very stable, but competitive, pricing environment,” said Mr. Young. ABF’s third quarter 2005 total weight per shipment increased by 3.6% versus the third quarter of 2004. Third quarter 2005 total length of haul

declined by 0.8% compared to the third quarter of 2004. Increases in weight per shipment and decreases in length of haul cause revenue per hundredweight to go down.

     “ABF’s productivity measures on the dock and in the city pickup and delivery operation are consistent with the first half of the year, but below those of the third quarter of 2004. As in this year’s second quarter, ABF’s shipment mix is impacting these statistics,” said Mr. Young. “Larger shipments moving throughout ABF’s network, combined with a significant increase in truckload shipments requiring additional pickup, delivery and dock labor, have caused a decrease in “per shipment” productivity compared to last year’s third quarter,” said Mr. Young. “As has been the case throughout this entire year, the yard productivity of trailer movement at ABF’s largest facilities exceeded that of the same period last year.”

     During the third quarter, hurricanes Katrina and Rita had minimal impact on ABF’s operations in the Gulf Coast and South Texas regions. All ABF facilities in these areas are now fully operational, limited only by public infrastructure damage and accessibility to customer locations. “Fortunately, none of ABF’s employees were injured or killed as a result of these terrible storms, though several lost many of their possessions,” said Mr. Young. “We will continue to support our employees and assist the relief agencies serving these areas.”

     From September 7 through October 4, 2005, ABF limited its standard fuel surcharge due to the extremely volatile fuel prices resulting from Hurricane Katrina. During this period, ABF’s fuel surcharge was capped at the pre-Katrina level that was established on August 29. Had ABF charged its standard fuel surcharge percentage, approximately $2.2 million of additional revenue would have been earned. This reduced Arkansas Best’s third quarter earnings by $0.05 per diluted common share.

Clipper

     For the third quarter of 2005, Clipper had revenues of $26.7 million, an 8.6% increase over third quarter 2004 revenue of $24.6 million. “As seen last quarter, the revenue in each division of Clipper increased compared to last year, highlighted by a 19.3% increase in truck brokerage revenue,” said Mr. Young. Clipper’s third quarter 2005 operating ratio improved to 97.8% compared to a third quarter 2004 operating ratio of 99.2%.

     “Clipper experienced solid third quarter demand for its services in all segments,” said Mr. Young. “Fuel cost pressures impacting over-the-road, truckload competitors created intermodal opportunities for Clipper that positively affected third quarter results. Average revenue per shipment at Clipper’s temperature-controlled division increased, primarily due to tighter equipment capacity. Despite rising fuel prices, Clipper’s brokerage division was able to add customers and new business throughout the quarter,” said Mr. Young. “Overall, Clipper’s continued focus on improved negotiation of contracts and attention to specific account profitability are resulting in enhanced margins.”

Common Stock Purchase

     During the third quarter of 2005, Arkansas Best made open-market purchases, totaling 209,000 shares, of its common stock. The total purchase price for these transactions was $7.1 million. These common shares were added to the company’s treasury stock. Arkansas Best has now purchased a total of 843,150 shares totaling $25.0 million. This completes a program, announced in January 2003, to repurchase up to a maximum of $25 million of Arkansas Best’s common stock.

     On July 28, 2005, Arkansas Best’s Board of Directors announced the authorization of an additional $50 million to Arkansas Best’s stock repurchase program. Arkansas Best plans to continue making open-market purchases of its stock on an opportunistic basis.

Conference Call

     Arkansas Best Corporation will host a conference call with company executives to discuss the 2005 third quarter results. The call will be today, Monday, October 24, at 2:00 p.m. EDT (1:00 p.m. CDT). Interested parties are invited to listen by calling (877) 275-1257. Following the call, a recorded playback will be available through the end of the day on Saturday, November 12, 2005. To listen to the playback, dial (800) 642-1687. The conference call ID for the playback is 1208941. The conference call and playback can also be accessed, through Saturday, November 12, on Arkansas Best’s Web site atwww.arkbest.com.

     Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a transportation holding company with two primary operating subsidiaries. ABF Freight System, Inc., in continuous service since 1923, provides transportation of less-than-truckload (“LTL”) general commodities throughout North America. Clipper is an intermodal marketing company that provides domestic freight services utilizing rail and over-the-road transportation. For more information, please visitwww.arkbest.com.

Forward-Looking Statements

     The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this press release that are not based on historical facts are “forward-looking statements.” Terms such as “estimate,” “forecast,” “expect,” “predict,” “plan,” “anticipate,” “believe,” “intend,” “should,” “would,” “scheduled,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. Such statements are by their nature subject to uncertainties and risk, including, but not limited to, union relations; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best’s subsidiaries; actual future costs of operating expenses such as fuel and related taxes; self-insurance claims; union and non-union employee wages and benefits; actual costs of continuing investments in technology; the timing and amount of capital expenditures; competitive initiatives and pricing pressures; general economic conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in the Arkansas Best’s Securities and Exchange Commission (“SEC”) public filings.

     The following tables show financial data and operating statistics on Arkansas Best Corporation and its subsidiary companies.

ARKANSAS BEST CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2005			2004			2005			2004
	($ thousands, except share and per share data)
OPERATING REVENUES	$	489,885		$	461,888		$	1,363,823		$	1,261,224
OPERATING EXPENSES AND COSTS		439,802			417,663			1,257,574			1,176,715
OPERATING INCOME		50,083			44,225			106,249			84,509
OTHER INCOME (EXPENSE)
Net gain on sales of property and other(1)		15,350			248			15,398			433
Short-term investment income		629			104			1,520			149
Fair value changes and payments on interest rate swap(2)		—			300			—			449
Interest expense and other related financing costs		(297	)		(388	)		(1,775	)		(1,118	)
Other, net		755			927			837			791
		16,437			1,191			15,980			704
INCOME BEFORE INCOME TAXES		66,520			45,416			122,229			85,213
FEDERAL AND STATE INCOME TAXES
Current		25,662			15,725			57,555			29,483
Deferred (credit)		291			2,322			(9,763	)		4,602
		25,953			18,047			47,792			34,085
NET INCOME	$	40,567		$	27,369		$	74,437		$	51,128
Basic:
NET INCOME PER SHARE	$	1.61		$	1.09		$	2.94		$	2.04
AVERAGE COMMON SHARES OUTSTANDING (BASIC)		25,174,584			25,067,784			25,343,768			25,077,859
Diluted:
NET INCOME PER SHARE	$	1.59		$	1.07		$	2.89		$	2.00
AVERAGE COMMON SHARES OUTSTANDING (DILUTED)		25,531,101			25,546,370			25,738,026			25,501,009
CASH DIVIDENDS PAID PER COMMON SHARE	$	0.15		$	0.12		$	0.39		$	0.36

(1)	Includes $15.4 million in pre-tax gain from the sale of properties to G.I. Trucking Company.
(2)	The Company’s interest rate swap matured on April 1, 2005.

Note: Certain prior year amounts have been reclassified to conform to the current year presentation, including the reclassification of short-term investment income from interest expense, to a separate category. In addition, deferred financing costs and letter of credit fees have been reclassified from other expense to interest expense and other related financing costs.

ARKANSAS BEST CORPORATION

CONSOLIDATED BALANCE SHEETS

	September 30		December 31
	2005		2004
	(Unaudited)		Note
	($ thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	11,225	$	32,359
Short-term investment securities(1)		94,079		38,514
Accounts receivable, less allowances (2005 — $4,634; 2004 — $4,425)		166,149		150,812
Prepaid expenses		8,882		15,803
Deferred income taxes		30,316		28,617
Prepaid income taxes		1,539		3,309
Other		8,273		4,268
TOTAL CURRENT ASSETS		320,463		273,682
PROPERTY, PLANT AND EQUIPMENT
Land and structures		223,539		229,253
Revenue equipment		433,399		395,574
Service, office and other equipment		121,626		115,407
Leasehold improvements		14,314		13,411
		792,878		753,645
Less allowances for depreciation and amortization		394,409		383,647
		398,469		369,998
PREPAID PENSION COSTS		28,359		24,575
OTHER ASSETS		77,635		73,234
ASSETS HELD FOR SALE		1,000		1,354
GOODWILL, less accumulated amortization (2005 and 2004 — $32,037)		63,915		63,902
	$	889,841	$	806,745

Note: The balance sheet at December 31, 2004 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

(1) Auction rate securities in the amount of $38.5 million have been reclassified from cash and cash equivalents at December 31, 2004 to short-term investments. Auction rate securities were previously included in cash and cash equivalents at December 31, 2004 because of the short duration of their reset periods.

ARKANSAS BEST CORPORATION
CONSOLIDATED BALANCE SHEETS — continued

	September 30			December 31
	2005			2004
	(Unaudited)			Note
	($ thousands, except share data)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Bank overdraft and drafts payable	$	24,383		$	15,862
Accounts payable		69,593			62,784
Income taxes payable		17,445			2,941
Accrued expenses		154,141			148,631
Current portion of long-term debt		279			388
TOTAL CURRENT LIABILITIES		265,841			230,606
LONG-TERM DEBT, less current portion		1,212			1,430
FAIR VALUE OF INTEREST RATE SWAP(2)		—			873
OTHER LIABILITIES		68,310			67,571
DEFERRED INCOME TAXES		29,803			37,870
FUTURE MINIMUM RENTAL COMMITMENTS, NET (2005 – $43,121; 2004 – $45,763)		—			—
OTHER COMMITMENTS AND CONTINGENCIES		—			—
STOCKHOLDERS’ EQUITY
Common stock, $.01 par value, authorized 70,000,000 shares; issued 2005: 26,141,821 shares; 2004: 25,805,702 shares		261			258
Additional paid-in capital		239,427			229,661
Retained earnings		320,651			256,129
Treasury stock, at cost, 2005: 902,932 shares; 2004: 531,282 shares		(25,955	)		(13,334	)
Unearned compensation – restricted stock		(5,419	)		—
Accumulated other comprehensive loss		(4,290	)		(4,319	)
TOTAL STOCKHOLDERS’ EQUITY		524,675			468,395
	$	889,841		$	806,745

Note: The balance sheet at December 31, 2004 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

(2)    The Company’s interest rate swap matured on April 1, 2005.

ARKANSAS BEST CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended
	September 30
	2005			2004
	($ thousands)
OPERATING ACTIVITIES
Net income	$	74,437		$	51,128
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		44,689			40,533
Other amortization		191			219
Stock compensation expense		527			—
Provision for losses on accounts receivable		1,414			974
Provision (credit) for deferred income taxes		(9,763	)		4,602
Fair value of interest rate swap		(873	)		(4,294	)
Gain on sales of assets and other		(16,724	)		(2,046	)
Changes in operating assets and liabilities:
Receivables		(16,726	)		(30,712	)
Prepaid expenses		6,920			(1,524	)
Other assets		(12,836	)		1,363
Accounts payable, taxes payable, accrued expenses and other liabilities		33,510			40,431
NET CASH PROVIDED BY OPERATING ACTIVITIES		104,766			100,674
INVESTING ACTIVITIES
Purchases of property, plant and equipment		(77,047	)		(63,779	)
Proceeds from asset sales		26,977			12,333
Purchases of short-term investment securities(1)		(258,598	)		–
Proceeds from sales of short-term investment securities(1)		203,030			—
Capitalization of internally developed software and other		(3,176	)		(3,020	)
NET CASH USED BY INVESTING ACTIVITIES		(108,814	)		(54,466	)
FINANCING ACTIVITIES
Borrowings under revolving credit facilities		—			34,300
Payments under revolving credit facilities		—			(34,300	)
Payments on long-term debt		(327	)		(305	)
Net increase in bank overdraft		3,344			4,256
Dividends paid on common stock		(9,915	)		(8,991	)
Purchase of treasury stock		(12,621	)		(7,527	)
Proceeds from the exercise of stock options and other		2,433			6,390
NET CASH USED BY FINANCING ACTIVITIES		(17,086	)		(6,177	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(21,134	)		40,031
Cash and cash equivalents at beginning of period		32,359			5,251
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	11,225		$	45,282

(1) Purchases and sales of auction rate securities. The Company’s auction rate securities have increased $55.6 million since December 31, 2004.

ARKANSAS BEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA
AND OPERATING RATIOS (Unaudited)

	Three Months Ended										Nine Months Ended
	September 30										September 30
	2005					2004					2005					2004
	($ thousands)
OPERATING REVENUES
ABF Freight System, Inc.(1)
LTL	$	405,363				$	390,929				$	1,133,497				$	1,067,350
TL		46,443					36,982					119,917					97,706
Total		451,806					427,911					1,253,414					1,165,056
Clipper		26,738					24,610					78,998					70,551
Other revenues and eliminations		11,341					9,367					31,411					25,617
Total consolidated operating revenues	$	489,885				$	461,888				$	1,363,823				$	1,261,224
OPERATING EXPENSES AND COSTS
ABF Freight System, Inc.(1)
Salaries, wages and benefits	$	256,691		56.8	%	$	250,820		58.6	%	$	751,747		60.0	%	$	719,886		61.8	%
Supplies and expenses		65,885		14.6			53,495		12.5			183,578		14.6			150,405		12.9
Operating taxes and licenses		11,275		2.5			10,909		2.6			32,710		2.6			31,645		2.7
Insurance		7,960		1.8			6,911		1.6			20,828		1.7			18,190		1.6
Communications and utilities		3,481		0.8			3,427		0.8			10,633		0.8			10,728		0.9
Depreciation and amortization		13,733		3.0			12,138		2.8			39,559		3.2			35,240		3.0
Rents and purchased transportation		40,653		9.0			43,657		10.2			105,533		8.4			109,568		9.4
Other		877		0.2			912		0.2			2,934		0.2			2,346		0.3
Gain on sale of equipment		(722	)	(0.2	)		(573	)	(0.1	)		(1,336	)	(0.1	)		(673	)	(0.1	)
		399,833		88.5	%		381,696		89.2	%		1,146,186		91.4	%		1,077,335		92.5	%
Clipper
Cost of services		23,984		89.7	%		22,419		91.1	%		70,803		89.6	%		63,914		90.6	%
Selling, administrative and general		2,161		8.1			1,985		8.1			6,304		8.0			6,274		8.9
Loss on sale of equipment		9		–			15		–			9		–			17		–
		26,154		97.8	%		24,419		99.2	%		77,116		97.6	%		70,205		99.5	%
Other expenses and eliminations		13,815					11,548					34,272					29,175
Total consolidated operating expenses and costs	$	439,802				$	417,663				$	1,257,574				$	1,176,715
OPERATING INCOME (LOSS)
ABF Freight System, Inc.(1)	$	51,973				$	46,215				$	107,228				$	87,721
Clipper		584					191					1,882					346
Other income and eliminations		(2,474	)				(2,181	)				(2,861	)				(3,558	)
Total consolidated operating income	$	50,083				$	44,225				$	106,249				$	84,509

(1) Includes U.S., Canadian, and Puerto Rican operations of ABF affiliates.

ARKANSAS BEST CORPORATION
RECONCILIATIONS OF GAAP EARNINGS AND EARNINGS PER SHARE (Unaudited)

	Three Months Ended
	September 30, 2005
			Diluted
	Net		Earnings
Arkansas Best Corporation	Income		Per Share
	($ thousands, except per share data)
Amounts on a GAAP basis	$	40,567	$	1.59
Less gain on sale of properties to G.I. Trucking Company, after tax		9,757		0.38
Non-GAAP amounts disclosed	$	30,810	$	1.21

ABF FREIGHT SYSTEM, INC.
OPERATING STATISTICS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2005

		Three Months Ended September 30							Nine Months Ended September 30
		2005		2004		% Change			2005		2004		% Change
Billed Revenue* / CWT	LTL	$	28.09	$	26.04		7.9	%	$	27.33	$	25.35		7.8	%
	TL	$	11.42	$	9.92		15.1	%	$	10.65	$	9.38		13.5	%
	Total	$	24.43	$	22.84		7.0	%	$	23.77	$	22.18		7.2	%
Billed Revenue* / CWT	LTL	$	24.98	$	24.50		2.0	%	$	24.61	$	24.04		2.4	%
(without fuel surcharge)	TL	$	10.17	$	9.22		10.3	%	$	9.55	$	8.86		7.8	%
	Total	$	21.72	$	21.47		1.2	%	$	21.40	$	21.03		1.8	%
Billed Revenue* / Shipment	LTL	$	283.50	$	259.83		9.1	%	$	271.70	$	250.48		8.5	%
	TL	$	1,849.95	$	1,613.55		14.7	%	$	1,727.31	$	1,538.84		12.2	%
	Total	$	310.53	$	280.14		10.8	%	$	295.52	$	269.40		9.7	%
Tonnage	LTL		727,063		749,781		(3.0	)%		2,088,399		2,116,305		(1.3	)%
(tons)	TL		204,907		186,170		10.1	%		566,657		523,345		8.3	%
	Total		931,970		935,951		(0.4	)%		2,655,056		2,639,650		0.6	%
Shipments	LTL		1,440,827		1,502,977		(4.1	)%		4,200,810		4,283,408		(1.9	)%
	TL		25,298		22,896		10.5	%		69,905		63,825		9.5	%
	Total		1,466,125		1,525,873		(3.9	)%		4,270,715		4,347,233		(1.8	)%

*Billed revenue does not include revenue deferral required for financial statement purposes under the Company’s revenue recognition policy.

There were 64 workdays in the three months ended September 30, 2005 and in the three months ended September 30, 2004.
There were 192 workdays in the nine months ended September 30, 2005 and in the nine months ended September 30, 2004.
Includes U.S., Canadian and Puerto Rican operations of ABF affiliates.

Contact:	Mr. David E. Loeffler, Senior Vice President, Chief Financial Officer and Treasurer
	Telephone: (479) 785-6157
	Mr. David Humphrey, Director of Investor Relations
	Telephone: (479) 785-6200

END OF RELEASE