AIRBORNEÆS EARNINGS TUMBLE 49%
Airborne Freight Corp, which does business as Airborne Express, reported net income of $13.8 million in the second quarter, a 49 percent drop from a year earlier.
Revenue increased 4.1 percent to $811.0 million. Domestic sales grew 4.4 percent to $716.3 million, while international sales increased 2.3 percent.
Net income for the first six months was down more than 12 percent at $45. 9 million, including a one-time change of accounting credit.
Shipment growth continued to lag. Total domestic shipments handled in the quarter increased 0.7 percent to 79.1 million. International shipments decreased 5 percent to 1.7 million.
“The lack of growth in domestic shipments is the primary reason for the weaker operating results in this year's second quarter and six month year-to-date results,” said Lanny Michael, Airborne's senior vice president of finance. “In addition, the lack of higher growth in domestic shipments precludes any productivity gains which normally help offset cost increases.”