AIRBORNE FREIGHT REPORTS 3RD-QUARTER LOSS
Flat domestic business and escalating fuel costs led Airborne Freight Corp. to report a third-quarter net loss of $5.5 million, compared to earnings of $21.6 million for the year-earlier period.
Revenue improve 2.4 percent to $804.5 million for the Seattle-based
'Our total revenue growth in the third quarter was not enough to cover our cost increases,' said Carl Donaway, president and chief operating officer.
Total operating expenses increased 8.2 percent, due to a 51-percent increase in fuel costs and higher transportation purchase expenses both domestically and internationally.
Domestic shipment volume declined 0.6 percent to 78.5 million units, despite improvement in second-day shipments through airborne@home service.
International freight shipments grew 6.3 percent, while total international shipment volume declined 11.4 percent due to a decrease in express shipments. And while international revenue improved 10.5 percent, demand pushed international airline linehaul prices up.
'The shift in the mix of business to import and the cost increases on international air segments created significant cost pressures,' Donaway said.
For the first nine months of 2000, net income was $40.4 million, compared to $73.9 million for January-September 1999. Revenue rose 4.0 percent to $2.4 billion.
Airborne said it is taking several initiatives to spur growth, including introducing a ground delivery service in April. Other initiatives include leveraging yield management, pursing the small business market, enhancing its suite of products and expanding third party logistics capability.
