AIRBORNE REPORTS THIRD QUARTER LOSS
Airborne Inc., the holding company for Airborne Express, on Thursday reported a net loss of $3.1 million for its third quarter, compared to net income of $1.7 million in the third quarter of 2001.
The year-earlier results, however, were impacted by a $7.8-million credit for compensation received under the Air Transportation Safety and System Stabilization Act, which was aimed at aiding airlines following the Sept. 11, 2001 terrorist attacks.
The most-recent third quarter included two non-recurring charges: a $1-million restructuring charge and $3 million in costs for retiring a DC-8 from its fleet.
Airborne's revenues improved 9.1 percent to $843 million. Domestic revenue increased 9.7 percent to $749 million while international revenues declined $15 million. International revenue slipped 4.3 percent to $94 million.
Domestic air express shipments averaged 1.1 million per day, up about 1 percent from the third quarter of 2001.
Deferred products, led by Airborne's Ground Delivery Service (GDS) improved to more than 19 million shipments in the third quarter. GDS shipments averaged 188,000 per day, while @home shipments averaged 110,000 daily, exceeding Airborne's target of 95,000 per day.
'Our deferred ground delivery service and @home products made up approximately 21 percent of total domestic shipments, compared to 8 percent a year ago and 16 percent in the second quarter,' said Carl Donaway, chairman and chief executive officer.
International shipment volumes declined 2.2 percent and 9.2 percent in the first nine months of 2002. Cost-cutting efforts in the international segment were offset by tight capacity, due to the West Coast labor issue and peak-season shipping, Donaway said. The international segment reported an operating loss of $800,000, including restructuring costs.
For the first nine months of 2002, Airborne reported net income of $2.7 million, compared to a net loss of $21.6 million for the year-earlier period. Revenues were $2.44 billion, compared to $2.41 billion in 2001. Domestic revenue increased $48 million while international revenue declined 5.3 percent to $261 million.
Airborne said it will raise its fuel surcharge Nov. 4 to 4.3 percent of revenue on air business and 1.3 percent on GDS and @home services. The company last raised its fuel surcharge on Oct. 7, to 3.5 percent of revenue on air business and 1.2 percent on GDS and @home service.
Despite growth in air express volume and its deferred service products, Donaway said Airborne 'remains cautious' entering its fourth quarter.