EGL doubles net income in second quarter

EGL doubles net income in second quarter    Houston-based forwarder EGL Inc., which trades under the name EGL Eagle Global Logistics, nearly doubled its net income in the second quarter with a profit of $12.7 million, up from $6.5 million in the same quarter of 2003.
   Operating income for the second quarter of 2004 was $13.3 million, up 9 percent on the operating profit for the second quarter of 2003. In the latest quarter, operating income amounted to 2.1 percent of gross revenue and 6.4 percent of net revenue.
   EGL said its second-quarter 2004 operating income includes a $5.8 million charge for idle facilities, including the subleasing of an excess facility in Miami. Excluding the facility charge, operating income would have been $19.1 million, an increase of $6.9 million from the same period last year.
   In May, the forwarder sold its interest in Miami Air International for $6.7 million, resulting in a gain of $6.7 million that is reflected in non-operating income. The company had written off its investment in this operation. The sale was completed at a 7-percent gain over its original investment. In addition, the company acquired the remaining interests in joint ventures in France, Spain and Portugal during the quarter for a total of $16 million.
   Gross revenues increased 22 percent to $641 million in the second quarter. This reflected a 31-percent rise in ocean revenues, a 19-percent increase in air freight revenues and a 24-percent increase in customs brokerage and logistics. However, EGL reported a decline in ocean margins “due to increasing capacity constraints.”
   Second-quarter gross revenues outside North America increased 29 percent on strong volumes in China and the Middle East, the company said.
   Net revenues rose 12 percent to $209 million and surpassed net revenues for the first quarter of 2004, resulting in a new quarterly record high for EGL.
   For the six months ended June 30, EGL earned a net income of $18.7 million, twice the $9.3-million profit for the same period in 2003. Operating income climbed to $24.7 million from $16.8 million. Gross revenue rose to $1.2 billion from $1 billion and net revenue increased to $409 million from $353 million.