USFREIGHTWAYS EARNINGS DOWN 61%
USFreightways Corp. said Wednesday that its fourth-quarter net income was $8.8 million, down 61.1 percent from the fourth quarter of 2000.
The recent results for the Chicago-based trucking, logistics, and forwarding company included $2.7 million in pre-tax charges, related to termination benefits and lease termination charges, mostly within the company's logistics business segment. The year-earlier results included a $1.7-million pre-tax charge.
'The slowdowns which we saw coming as early as May of 2001 continued through 2001,' said Samuel K. Skinner, USFreightways' chairman, president and chief executive officer. 'The economic conditions, combined with the terrorist attacks which stunned the nation on Sept. 11, created the worst operating environment in decades.'
The regional less-than-truckload group reported operating income of $25.1 million on revenue of $430.5 million for the fourth quarter of 2001, compared to $4.8 million on revenue of $473.6 million in the year-earlier quarter. Operating ratio increased to 94.2 percent, from 90.5 percent. LTL shipments decreased 4.1 percent and LTL tonnage decreased 6.5 percent.
The logistics group reported $3.4 million in operating profit, excluding a $1.6 million special charge, related primarily to the merging of USF Logistics and USF Distribution into a single management team. The result is 19 'percent off from the operating income of $4.2 million in the year-earlier period. Revenue slipped 4 percent to $71.7 million.
At the freight forwarding group, operating losses were $3.2 million, compared to a loss of $3.3 million in the fourth quarter of 2000.
'In addition to dramatic cost reductions in USF Worldwide's domestic operations, we have spun off the joint venture Asian operations to our former partners,' Skinner said. 'This move will allow the USF Worldwide team to concentrate on its turnaround plan and at the same time allow business to grow in Asia through the agent structure now in place since Jan. 1.'
USFreightways recently said it had relinquished its interest in USF Asia Group Ltd., USF Worldwide's freight forwarding joint venture in Asia. A one-time payment of $10 million was made to Asia Challenge Ltd., a Hong Kong-based logistics company and USF Worldwide's former joint venture partner. The company also provided $^ million in loans to USF Asia Group. A pre-tax charge of $13 million to earnings will be applied to the first quarter.
For 2001, net earnings were $38.4 million, including the $2.7-million, fourth-quarter charge and a $5.9-million special charge for the third quarter. Net income for 2000 was $96.8 million. Revenue for 2001 was $2.46 billion, down from $2.54 billion in 2000.