LOSSES WIDEN AT CONSOLIDATED FREIGHTWAYS
Consolidated Freightways Corp. reported a second-quarter loss of $35.0 million, compared to breakeven results for the year-earlier quarter.
Revenue rose 1.0 percent to $590.4 million, while an operating loss of $31.7 million countered an operating income of $2.1 million in the second quarter of 2000. About two-thirds of the operating loss was attributed to CF's inability to receive tax benefits for the loss.
“The slowdown has particularly hurt business sectors where CF is strongest, including computer technology, trade show and cross-border traffic,” said Pat Blake, CF's chief executive officer. However, he said the company “made notable progress this quarter in regaining market share at market prices.”
CF said Wednesday it will implement a general freight rate increase of about 5.1 percent, and will increase its absolute minimum shipment charge by $5 and certain accessorial charges by 5 percent. The company pointed to rising costs for insurance, wages, fuel and equipment as the impetus for the rate increase.
Total tonnage handled improved 1 percent, while revenue per hundred-weight fell 1.2 percent to $17.31
For the first six months of 2001, CF's losses extended to $36.9 million, compared to a loss of $2.9 million in the first half of 2000. Revenue were off slightly, to $1.16 billion
Vancouver, Wash.-based CF comprises less-than-truckload carrier Consolidated Freightways; logistics provider Redwood Systems; Canadian Freightways Ltd.; Transpotes CF AlfriLoder,a joint venture in Mexico; and CF AirFreight, an air freight forwarder.