894405--2/23/2007--ARKANSAS_BEST_CORP

related topics

{cost, regulation, environmental}

{system, service, information}

{product, market, service}

{cost, contract, operation}

{cost, operation, labor}

{gas, price, oil}

{condition, economic, financial}

{debt, indebtedness, cash}

{loss, insurance, financial}

Our business could be harmed by antiterrorism measures. We operate in a highly competitive industry and our business could suffer if our operating subsidiaries were unable to adequately address downward pricing pressures and other factors that could adversely affect their ability to compete with other companies. Our new service and growth initiatives may not be accepted by our customers. We depend heavily on the availability of fuel for our trucks. Fuel shortages, increases in fuel costs and the inability to collect fuel surcharges or obtain sufficient fuel supplies could have a material adverse effect on our operating results. We depend on transportation provided by rail services and a disruption of this service could adversely affect our operations. We have significant ongoing capital requirements that could affect profitability if we were unable to generate sufficient cash from operations. Increased prices for new revenue equipment and decreases in the value of used revenue equipment could adversely affect our earnings and cash flows. The engines used in our newer tractors are subject to new emissions-control regulations, which could substantially increase operating expenses. Decreases in the availability of new tractors and trailers could have a material adverse effect on our operating results. Ongoing claims expenses could have a material adverse effect on our operating results. Increased insurance premium costs could have an adverse effect on our operating results. We operate in a highly regulated industry and costs of compliance with, or liability for violations of, existing or future regulations could have a material adverse effect on our operating results. We depend on our employees to support our operating business and future growth opportunities. If our relationship with our employees were to deteriorate, we could be faced with labor disruptions or stoppages, which could have a material adverse affect on our business and reduce our operating results and place us at a disadvantage relative to nonunion competitors. We could be obligated to make significant payments to cover withdrawal liabilities to multiemployer pension plans if we were to cease making our contractual monthly contributions to those plans. In addition, if a plan were found to have a funding deficiency under federal tax law, we would be required to make additional contributions to that plan to avoid excise taxes related to the funding deficiency. Our information technology systems are subject to certain risks that are beyond our control. Our operations are subject to various environmental laws and regulations, the violation of which could result in substantial fines or penalties. Our results of operations can be impacted by seasonal fluctuations or adverse weather conditions.

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894405--2/23/2007--ARKANSAS_BEST_CORP_/DE/