APHIS INCREASES TUBERCULOSIS TESTING FOR IMPORTED CATTLE
USFreightways Corp., the Chicago-based trucking, logistics, and freight forwarding company, reported a 62-percent drop in first-quarter net income, to $8.5 million.
The company blamed the results on the slowing economy and resultant lower volumes, losses in the company's freight forwarding business.
Revenue rose to $621.4 million, from $618.7 million.
Less-than-truckload revenue decreased 1.8 percent to $459.0 million. LTL shipments declined 2.8 percent and LTL tonnage fell 5.1 percent.
Of USFreightways' five LTL subsidiaries, USF Holland was hardest hit, due to dramatic declines in the automotive industry and other heavy manufacturing based in the central United States.
Operating earnings for the regional trucking group were down 37 percent, to $24.1 million, and operating ratio increased to 94.8, from 91.9 for the year-earlier period.
The logistics group's operating earnings decreased 34 percent to $2.8 million, while revenues rose 6 percent to $71.2 million. Profit declines were primarily due to lower activity at USF Processors and less profitable business in the food and consumer units of USF Logistics.
USF Worldwide, the freight forwarding division, reported a $3.3 million loss in income from operations, though revenue was up 9.3 percent to $66.5 million. The division is undergoing reorganization, under a new management team led by John Gallahan.