EGL REPORTS 4TH-QUARTER PROFIT
EGL Inc., which operates under the name EGL Eagle Global Logistics, reported a fourth-quarter net income of $821,000, compared to a net loss of $42.5 million for the year-earlier period.
The fourth-quarter 2001 results included an after-tax gain of $954,000, while the year-earlier results included the impact of unusual expenses and costs related to EGL's merger with Circle International Group Inc.
Fourth-quarter revenue was $425 million, down from $515 million the year-earlier period. Net revenues were $168 million, down from $187 million.
North American revenues fell 23 percent to $250 million, reflecting the impact of a week economy and the Sept. 11 terrorist attacks. Net revenue margin of 45.3 percent was up from 41.4 percent for the fourth quarter of 2000.
Priority shipments were down 22 percent, reflecting a trend toward lower cost ground shipments, the company said. Deferred shipments improved 2 percent. Total domestic shipments were down 15 percent.
'our net revenue margins remained firm despite the shift toward lower cost ground services and the competitive pressures we are facing,' said Jim Crane, chief executive officer. 'From a year ago, our cost structure has become significantly more flexible, having reduced our dedicated domestic charter planes to four from 13 a year ago.'
EGL's revenues outside North America were down 8 percent to $175 million, while net revenues improved 3 percent to $54 million
Unusual fourth-quarter items include a $1.4-million gain on the sale of Circle's former headquarters and $867,000 in debt refinancing expenses.
For 2001, EGL reported a net loss of $40.2 million, compared to a loss of $722,000 for 2001. Revenues were $1.7 billion, compared to $1.9 billion in 2000, while net revenues were $644 million, down from $720 million.
Houston-based EGL is negotiating to reduce the costs of operating its four dedicated heavyweight 727 planes on lease from Miami Air, and is exploring options to reduce its dependence on those planes, the company said.