AIRBORNE REPORTS 1ST-QUARTER LOSS, REVISES 2001 OUTLOOK

AIRBORNE REPORTS 1ST-QUARTER LOSS, REVISES 2001 OUTLOOK    Airborne Inc., the holding company for Airborne Express, reported a first-quarter net loss of $17 million, compared to a profit of $17.9 million in the year-earlier quarter.
   The Seattle-based express carrier also revised its 2001 outlook and is anticipating a year-end operating loss, due to a slowing economy, shift in the mix of shipment volumes and lack of growth in its core domestic product.
   “We expect slow shipment volume growth throughout 2001 and, while we will continue to pursue cost reductions, it will be more difficult to return to positive operating income this year,” said Robert Cline, chairman and chief executive officer.
   For the first quarter, revenue grew 1.4 percent to $824 million. Operating expenses rose 8.1 percent to $842 million. Total shipment volume rose 2 percent to 83.4 million.
   International revenue increased 7.1 percent to $93.4 million, while volume grew 4.9 percent, due to growth in heavyweight freight volumes.
   Domestic revenue rose less than 1 percent to $730.1 million while shipment volume improved 1.9 percent to 83.3 million.
   Airborne' domestic volumes were helped by the company's business-to-consumer @home service, which was introduced last year. 'Excluding @home, our domestic volume declined 3.9 percent compared to last year's quarter,' Cline said. Airborne@home shipments rose to 5.3 million, from 600,000 for the year-earlier period. Shipments averaged 82,000 per day, well beyond the first-quarter target of 65,000 per day.
   “We did not expect to reach the 82,000 shipment level until the fourth quarter,” said Carl Donaway, president and chief operating officer.” While initially projecting 10-percent growth for its @home product, Airborne's revised projections show the volumes staying at 80,000 to 85,000 per day throughout 2001.
   Airborne said it has reduced planned capital spending by $60 million thus far, and targets $200 million in cuts for 2001. The company also anticipates additional revenue from its new Ground Delivery Service, launched earlier this month.
   Also this month, the express carrier introduced a new 10:30 a.m. delivery option.