AIRBORNE REBOUNDS INTO BLACK IN 2ND QUARTER, FIRST HALF
Airborne Inc. said cost controls and operational enhancements helped bring second-quarter and first-half results into the black for the Seattle-based integrator.
Airborne's first-quarter net income was $457,000, compared to a net loss of $6.4 million in the year-earlier quarter. The first-quarter 2002 result included a $2.3-million restructuring charge. Revenues for the quarter declined slightly to $810 million.
For the first half of 2002, net income rose to $5.7 million, up from a net loss of $23.4 million in the same period in 2001.
'We continue to take steps to enhance our operation margins; the recent realignment of international operations coupled with specific action to reduce overhead should help us achieve further improvement,' said Carl Donaway, chairman and chief executive officer.
The company is working to expand the customer base of its year-old ground delivery service offering, he said.
'The ground delivery service (GDS) is driving shipment volume growth,' he said. 'Although these deferred shipments generate lower yields than air shipments, ground delivery allows us to enhance productivity and leverage our infrastructure.' Growth of GDS has offset declining air volumes, he noted.
Domestic revenue remained stable at $720 million for the second quarter. Domestic shipments rose 2.5 percent, with GDS growing to more than 10 percent of domestic shipments and more than 21 percent of domestic weight.
International revenue declined 1.6 percent to $91 million, while international volumes declined 7.7 percent.
Total shipment volume increased 2.3 percent in the quarter to 85.6 million shipments. Total domestic volume was up 2.5 percent as the mix shifts to ground delivery. Domestic air express volumes declined 7.8 percent in the second quarter.
GDS comprised 10.5 percent of domestic shipments in the quarter, compared to less than 1 percent on year earlier. GDS shipments averaged 138,000 per day exceeding the company's 130,000 per-day target. Airborne@home volumes averaged 78,000 per day, below the low-end target of 95,000 per day, due to changes in shipping patterns, Airborne said.
While the economy is showing signs of improvement, Airborne said core express volumes may be lower in the second half, though the international segment should show modest profitability in the second half, Donaway said.