Profit recovery at EGL

Profit recovery at EGL    EGL Inc. said increases in gross revenues and net revenues boosted the Houston-based forwarder’s fourth-quarter net income 37 percent to $9.1 million from $6.7 million in the fourth quarter of 2002.
   The improved results confirm the recovery of EGL, a company that had been hit by the downturn of the U.S. air forwarding business.
   Gross revenues increased 18 percent in the latest quarter to $621.9 million, reflecting a 9-percent increase in air freight revenues, a 50-percent increase in ocean revenues and a 34-percent rise in customs brokerage and logistics. Net revenues increased 8 percent to $198 million in the fourth quarter, a record high for the company.
   “We continue to see growth in all international product lines and slight improvements in the USA domestic forwarding market,” said Jim Crane, EGL chief executive officer. Revenues outside North America increased 28 percent in the fourth quarter.
   EGL’s results were affected by higher airline and ocean rates paid to carriers, primarily out of Asia.
   Operating income for the quarter increased 42 percent to $16.6 million from $11.7 million, due to the $14.9 million improvement in net revenues and no growth in other selling, general and administrative expense.
   Operating income as a percent of net revenue improved to 8.4 percent in the fourth quarter, the highest level at EGL since 2000.
   For the year, gross revenues rose 16 percent to $2.17 billion. Net revenues increased 9 percent to $735 million. Operating income climbed to $44.8 million last year from $29.7 million in 2002, while net income increased 154 percent to $23.9 million from $9 from 2002.
   EGL Inc. operates under the name EGL Eagle Global Logistics and its shares are traded on the Nasdaq stock exchange.