DHL cutbacks hurt ABX Air earnings

DHL cutbacks hurt ABX Air earnings    ABX Air said its revenue in the second quarter dropped $47 million to $303.6 million compared to the same period in 2005 due in large measure to a decline in truck line-haul service for DHL.
   The cargo airline said net income declined $300,000 to $6.5 million, or 11 cents per share.
   Last year DHL, ABX’s primary customer, took over the regular route trucking operations between cities previously managed by ABX. The Wilmington, Ohio-based airline said line-haul operations contributed $72.2 million in revenue and $1.2 million to earnings during the second quarter of 2005.
   ABX said its revenue from non-DHL charter operations increased 69 percent to $5.4 million.
   For the half year, ABX earnings inched up to $14.6 million from $13.8 million on revenues of $698 million.
   During the quarter ABX secured two contracts to manage ground hubs for the U.S. Postal Service in Dallas and Memphis, beginning in September. The four-year contracts are projected to bring in about $5 million in revenue apiece.
   ABX continues to be under pressure as DHL cuts back on purchased services, including management of DHL’s regional sorting hub in Allentown, Pa., and the use of 21 planes, bringing to 28 the number of ABX freighters released from service. DHL still has 91 planes under dedicated lease to DHL.