CIRCLE SHOWS IMPROVEMENT
San Francisco-based Circle International said net income before a one-time gain grew 22 percent to $7.1 million in the fourth quarter, capping a solid 1999 that saw the forwarding and logistics provider gain momentum under new management.
Net revenue, or sales minus purchased transportation costs, increased 10 percent to $90.8 million in the last quarter, pushing full year net revenue up 10 percent to $332.0 million. Annual profit, not including a one-time $2.7-million gain, increased 11 percent to $20.5 million, on a 10 percent increase in total revenue of $814.1 million.
'We are beginning to see the return on our investments,' said David I. Beatson, chairman, president and chief executive officer. Beatson came from Emery Worldwide to take the reigns at Circle in 1998.
'A year ago, we implemented programs focused on upgrading information systems and further developing new business,' Beatson said. 'We improved customer relationships, grew Circle's client base and increased our penetration of the strategic logistics market, which were our primary goals for the year.'
Each of Circle’s principal product lines improved year-over-year. Net revenues for air freight and ocean freight were up 10 percent and 16 percent, respectively. Net revenue from logistics, including customs brokerage, increased 8 percent.