EGL posts 113 percent increase in net income for 2004

EGL posts 113 percent increase in net income for 2004    EGL Inc., a Houston-based provider of transportation and supply chain management services that operates under the name EGL Eagle Global Logistics, said its net income more than doubled to $50.9 million in 2004 from $23.9 million in 2003.
   Revenue for the year increased 28 percent to $2.7 billion from $2.1 billion in 2003.
   EGL's margin of net revenue declined 2.7 percentage points year-over-year, due to 'the impact of fuel surcharges and high ocean and airline rates,' EGL said in a statement.
   In the fourth quarter, EGL's revenue increased 31 percent to $802 million. Net revenues rose 16 percent to $230 million, while net revenue margin declined 3.8 percentage points.
   For the fourth quarter, air freight revenues rose 33 percent, ocean revenues improved 31 percent, and both customs brokerage and logistics improved 24 percent. Revenue outside of North America increased 45 percent due to higher volumes from Asia, higher fuel costs and the stronger euro and sterling to the dollar.
   EGL's fourth-quarter performance 'reflects overall growth, offset by the impact of fuel surcharges, one-time tax charges, and increased expenses related to Sarbanes-Oxley compliance,' said James R. Crane, chief executive officer of EGL.
   EGL Global Logistics also said nearly $6 million had been returned to the company from a 2001 settlement with the U.S. Equal Employment Opportunity Commission.
   As a result of a federal court order in 2001, EGL had established a fund of $8.5 million to settle potential claims. On Feb. 10, the court agreed to return the funds to the company, 'as payments are only expected to be $1 million,' EGL said.
   The court agreed with EGL's proposal that $1.4 million of the $8.5 million settlement be used by EGL to train women and minorities and provide scholarships and continuing education programs.
   After three years, only 203 claims, fewer than 10 percent of the total received, were determined to be eligible for a distribution from the settlement fund, which prompted EGL to request the return of the excess funds.