EGL REPORTS LOWER SHIPMENT VOLUMES FOR MARCH

EGL REPORTS LOWER SHIPMENT VOLUMES FOR MARCH    EGL Eagle Global Logistics, the Houston-based forwarding company, said on Monday that its U.S. shipment volumes in March were lower than a year ago and warned that it will not reach earlier volume and profit targets for this year.
   “U.S.A. shipment activity in March was slightly below last year’s levels and did not reflect the acceleration normally seen at the end of the quarter,” the company said. “Traditionally, March has reflected a sharp increase in activity as compared to January or February, by as much as 20 percent in the last two years.
   EGL also indicated that some customers began converting shipments from air to ground during the quarter. Priority shipments in North America declined by 7 percent in the first quarter from a year ago, while deferred shipments increased 7 percent.
   March reflected a 2 percent decline in North American priority shipments compared to January levels, while the deferred shipments grew 1 percent.
   “We are seeing the impact of the weak economy on our business,” said Elijio Serrano, EGL chief financial officer. He added that the company’s first-quarter results, due to be announced today (Tuesday), were negatively impacted by the lack of volume growth.
   “We expect first quarter earnings to be significantly less than is currently anticipated by analyst consensus estimates,” Serrano warned. “As a result of the slowdown and continued economic uncertainty, it is unlikely that we will be able to achieve our previous 2001 earnings, revenue and other forecasts.”
   EGL said that the uncertainty concerning the duration of the economic slowdown “makes it extremely difficult to forecast future financial results.”
   EGL said that it will continue to reduce its cost structure to minimize the impact of the weak economy. EGL took over San Francisco-based forwarder and customs broker Circle International last year.