GEOLOGISTICS REPORTS MORE LOSSES, 600 LAYOFFS
GeoLogistics Corp., the troubled forwarding and
logistics group, reported further losses for the quarter and nine months ended Sept. 30,
despite a $70-million capital gain on the sale of a subsidiary company.
For the third quarter, GeoLogistics made a net loss of $504,000
compared to a deficit of $2 million in the third quarter of last year. The operating
result was a loss of $28 million, compared to an operating income of $246,000 in the same
quarter of 1998.
GeoLogistics said that the operating loss was largely due to the
downturn in its Americas freight forwarding business.
Revenues were $400 million, up from $388 million in the third quarter of last year.
The $28-million operating loss for the latest included restructuring
and non-recurring charges of $10 million related to layoffs.
GeoLogistics is terminating the employment of about 600 sales, administrative and
warehouse employees globally.
The third-quarter net loss takes into account a capital gain of $70
million on the sale in September of GeoLogistics Air Services to the Federal Express
group.
For the nine months ended Sept. 30, GeoLogistics posted a net deficit
of $28 million, compared to a net loss of $8 million in the corresponding period of 1998.
The operating result was a loss of $42 million, compared to an
operating profit of $298,000 in the same period of last year.
Revenues were $1.16 billion, up from the $1.12 billion for the first nine months of 1998.
The highly-leveraged GeoLogistics group reported a negative
stockholders equity of (minus) $27 million as of Sept. 30, compared to a positive equity
of $2 million in September 1998.