Net revenue decreased 17 percent to $332.7 million from $400.8 million in the comparable period.
“Our fourth quarter results were clearly impacted by the weakening economic environment and the slowing in global trade, which reduced volumes in forwarding and logistics — particularly in the month of January,' said Eric W. Kirchner, chief executive officer. 'Total operating costs (including purchased transportation costs) also decreased significantly in the quarter, demonstrating the flexibility of our business model and the impact of our earlier cost reduction measures.”
But he said “these mitigating factors did not fully offset the decrease in revenues, however, because of the speed of the volume contraction and the significant strengthening of the U.S. dollar against most currencies.
“While our operating expenses are at their lowest level in nearly two years, we have taken further steps since the beginning of the quarter,” he said. These actions include a salary freeze, revision to incentive structure, control of discretionary spending such as travel and “reduction in headcount where necessary in accordance with volume declines.
'These actions are expected to reduce operating costs for fiscal 2010 by about $50 million from our fourth-quarter run rate,' Kirchner said.
