GEOLOGISTICS REPORTS MORE LOSSES, 600 LAYOFFS

GEOLOGISTICS REPORTS MORE LOSSES, 600 LAYOFFS

   GeoLogistics Corp., the troubled forwarding and logistics group, reported further losses for the quarter and nine months ended Sept. 30, despite a $70-million capital gain on the sale of a subsidiary company.
    For the third quarter, GeoLogistics made a net loss of $504,000 compared to a deficit of $2 million in the third quarter of last year. The operating result was a loss of $28 million, compared to an operating income of $246,000 in the same quarter of 1998.
    GeoLogistics said that the operating loss was largely due to the downturn in its Americas freight forwarding business.
Revenues were $400 million, up from $388 million in the third quarter of last year.
    The $28-million operating loss for the latest included restructuring and non-recurring charges of $10 million related to layoffs.
GeoLogistics is terminating the employment of about 600 sales, administrative and warehouse employees globally.
    The third-quarter net loss takes into account a capital gain of $70 million on the sale in September of GeoLogistics Air Services to the Federal Express group.
    For the nine months ended Sept. 30, GeoLogistics posted a net deficit of $28 million, compared to a net loss of $8 million in the corresponding period of 1998.
    The operating result was a loss of $42 million, compared to an operating profit of $298,000 in the same period of last year.
Revenues were $1.16 billion, up from the $1.12 billion for the first nine months of 1998.
    The highly-leveraged GeoLogistics group reported a negative stockholders equity of (minus) $27 million as of Sept. 30, compared to a positive equity of $2 million in September 1998.