ABF is the largest subsidiary of the Company, currently accounting for approximately 77% of the Company’s consolidated revenues. ABF has grown to become the fifth largest LTL motor
carrier in the United States from the forty-eighth largest in 1965, based on revenues for 1994 as reported to the ICC. ABF, which concentrates on long-haul LTL shipments, provides direct service to 939 of the 952 cities in the United States having a population of 25,000 or more. ABF and the Company’s other motor carrier subsidiaries have 338 terminals and operate in all 50 states, Canada and Puerto Rico. Through an alliance and relationships with trucking companies in Mexico, ABF provides motor carrier services to customers in that country as well. ABF has more than 50,000 customers, including approximately 335 national accounts. ABF was incorporatedin Delaware in 1982 and is the successor to Arkansas Motor Freight, a business originally organized in 1935.

ABF concentrates on long-haul transportation of general commodities freight, involving primarily LTL shipments. General commodities include all freight except hazardous waste, dangerous explosives, commodities of exceptionally high value, commodities in bulk and those requiring special equipment. ABF’s general commodities shipments differ from shipments of bulk raw materials which are commonly transported by railroad, pipeline and water carrier.

General commodities transported by ABF include, among other things, food, textiles, apparel, furniture, appliances, chemicals, non-bulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, mach-inery and miscellaneous manufactured products. During the year ended December 31, 1994, no single customer accounted for more than 3% of ABF’s revenues, and the ten largest customers accounted for less than 10% of ABF’s revenues.

International Markets

ABF Freight System Canada, Ltd. ("ABF-Canada") and ABF Freight System (B.C.), Ltd.’s ("ABF-BC") Canadian operations are comprised of 14 terminals in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Prince Edward Island, Ontario, and Quebec. In addition, ABF maintains a national account sales office in Montreal. Also available is simplified rating to and from Canada, similar to the zip-rating program which ABF uses in the United States.

Through an alliance with Mexico’s largest LTL specialist, ABF provides motor carrier services to that country as well. This service gives ABF customers a practically seamless operation featuring single-billing including all freight charges, through-cargo claims liability and tracing, diskette rating, voice-response rate quotes and shipment status, hazardous materials service, and payment in either U.S. dollars or in Mexico pesos. This service is offered to and from all points serviced through ABF tariffs to and from specified points in Mexico. ABF has expanded its Mexico sales and customer support staffs and maintains ABF sales offices in Mexico City, Monterey and Guadalajara.

Since entering the worldwide market in 1992, ABF has put together a seamless, single-bill service to more than 200 ports in 124 countries throughout the world. The service also allows electronic shipment tracing from origin to destination.

Specialized Services

Through an alliance with Burnham Service Corporation, ABF’s TurnKey service provides customers a seamless, one-source transportation system featuring door-to-door/through-the-door deliveries plus personalized unpack and set-up services. ABF picks up the products from the shipper and delivers them to a Burnham center nearest the consignee’s address. From that point, Burnham contacts the customer and arranges the most suitable delivery time. TurnKey has one-call access, single-carrier liability, through-rates and one-source invoicing. It uses the most
sophisticated state-of-the-art satellite communications, bar-coding technology, and computer linkage between ABF and the customer for on-going up-to-the-minute status checks on shipments. The service is available from any point served by the ABF system to any point in the contiguous 48 states.