AIRBORNE REBOUNDS WITH 4TH-QUARTER PROFIT

AIRBORNE REBOUNDS WITH 4TH-QUARTER PROFIT    Airborne Inc., the holding company for Airborne Express, reported a fourth-quarter net income of $2.2 million, compared to a net loss of $11.9 million for the year-earlier period.
   The recent fourth-quarter results include a $5.2-miilion after-tax credit from the Air Transportation Safety and System Stabilization Act, and a $1.0-million gain on the sale of radio frequencies.
   Net loss for the year was $19.5 million, including the non-recurring credits. In 2000 net earnings totaled $28.5 million.
   'Our cost control measures significantly contributed to the improvement in net earnings for the quarter,' said Robert Cline, chairman and chief executive officer of Airborne. 'Throughout 2001, we made significant strides in executing our growth improvement plans ' expanding our product line, focusing on yield management and cutting costs ' amid a weakening economy.'
   Airborne cut operating costs 7.9 percent, including the federal credit, to $793 million. Operating income improved to    $9.7 million in the fourth quarter, compared to a loss of $13.1 million in the year-earlier period. Revenues decreased 5.4 percent to $803 million, while domestic revenues were down 4 percent.
   Shipment volumes in the deferred product category of second-day and ground delivery grew, while express services continued to decline. Total volume was down 2.4 percent to 82.8 million shipments for the quarter and remained flat for the year at 329.2 million. Domestic shipments were down 2.2 percent for the quarter and was flat for the year, while international volume dropped 12.8 percent for the quarter and 4.2 percent for the year.
   Airborne anticipates growth in its deferred and ground products, targeting @home shipments of 90,000 per day in the first quarter and 3 to 5 percent incremental growth in the following quarter. The ground product is targeted at more than 60,000 shipments per day, with 10 to 15-percent sequential quarterly gain.
   Airborne expects pressure on operating performance in the first quarter from higher operating costs, due in part to increased pension and insurance costs. The company is expecting capital expenditures of up to $175 million    due to the delivery of three Boeing 767 aircraft and the investment in technology projects.