High air cargo rates hit EGL’s profits

High air cargo rates hit EGL’s profits    EGL, Inc., the Houston-based forwarding group operating under the name EGL Eagle Global Logistics, has lowered its predicted earnings per share for the third quarter, as it reported price increases from airlines on shipments from Asia and poor volumes.
   EGL now expects to report earnings per share of $0.12 for the latest quarter, down from previous forecasts of $0.18 to $0.20 per share. Earnings per share for the third quarter of 2002 were $0.12.
   “Airline price increases out of Asia were not matched with corresponding increases to EGL’s customers due to weak air freight demand, resulting in an impact to earnings per share of approximately $0.05,” explained James R. Crane, EGL’s chairman and chief executive officer.
   He reported a “slow start to the normally seasonally strong August-September period.” However, EGL saw improvements from North America volumes and logistics projects in Europe. Additionally, a settlement with Kitty Hawk, Inc., a wholesale transportation provider, was resolved through arbitration during the quarter, leading to a $2.3 million gain for EGL.
   EGL said that its gross revenue for the third quarter increased 15 percent, with its net revenue up 7 percent over the same quarter of last year. But net revenue margins deteriorated, the company said.
   EGL will report its third-quarter results on Nov. 11.