CIRCLE REPORTS 68% RISE IN FIRST-QUARTER PROFIT
Circle International Group, the San Francisco-based logistics provider, said net income in the first quarter rose 68 percent to $3.2 million, propelled by the absence of Y2K computer expenses.
Income from operations doubled to $4.6 million, as revenue increased 18 percent to $216.2 million. Net revenue, or sales minus the direct cost of transportation, improved 11 percent to $84.6 million.
“Our expanded customer base and focus on full-service solutions has fueled strong organic growth,” said David I. Beatson, chairman, president and chief executive officer. “We increased year-over-year revenues in every geographic region despite a soft January, where we experienced reduced shipping volumes due to customer Y2K inventory buildup late in 1999.”
Circle’s Europe region posted a 12-percent net revenue increase. Asian-Pacific net revenue grew 10 percent. North America net revenue was up 11 percent, the result of better yields on export traffic, and growth in imports, logistics/warehousing and customs brokerage business. Latin America net revenue also grew, but still accounted for less than 4 percent of sales, Circle said.