Four of the country's largest trucking and transportation providers reported their latest financial results. U.S. Xpress, CNF, Covenant Transportation and United Parcel Service have announced their fourth quarter and year-end results.
U.S. Xpress Enterprises, Chattanooga, Tenn., announced that operating revenues for the fourth quarter increased 3% to $201.6 million, compared with $195.7 million for the same quarter a year ago. The company incurred a net loss of $599,000 for the quarter, compared to a loss of $1.8 million in the fourth quarter of 2000 before a one-time charge.
For 2001, operating revenues increased 1.4% to $798 million from $787.1 million in the prior year. However, the company reported a net loss of $1.1 million for the year, most of which resulted from fees and expenses associated with amendments to the company's revolving credit facility and a terminated financing transaction. The compares to 2000 results of $3.5 million in net income (before the one-time charge).
"Although we continued to encounter a difficult economy and freight environment throughout 2001, especially in the long-haul segment of our truckload operations, our truckload operations and the floor covering logistics operations within CSI/Crown were profitable for both the quarter and the year," said Patrick Quinn, Co-Chairman. "The freight environment did, however, lead to lower utilization, as measured by revenue per tractor per week, and a higher percentage of empty miles. The impact of these factors on our truckload margins was mitigated to an extent by a reduction in fixed operating costs and lower fuel prices."
Results for both the quarter and the year were affected by operating losses from the start-up and expansion of a division of CSI/Crown that provides expedited airport-to-airport services to the air cargo industry.
During 2001, U.S. Xpress expanded its tractor fleet by nearly 9 percent, including a 25-percent increase in owner-operators. The company cut fixed costs in its truckload operations and expanded its regional and dedicated truckload businesses. Partly as a result of these initiatives, the company expects operating results to improve significantly in 2002.
The parent of several trucking and transportation operations, CNF, Palo Alto, Calif., reported a fourth-quarter net loss of $217.1 million on revenue of $1.14 billion. For the year 2001, revenue totaled $4.86 billion, with a net loss of $402.9 million.
2001 losses were triggered by restructuring charges at Emery Worldwide and the airline subsidiary, losses at Menlo Logistics due to the failure of a customer, a legal settlement and corporate charges. In the plus column was a cash settlement with the U.S. Postal Service related to the former Priority Mail contract, which the USPS moved to FedEx.
"With the economy in recession for the entire year and the loss of postal revenues, sales fell to a level we haven't seen since 1998," said Gregory L. Quesnel, president and CEO.
For the fourth quarter, Con-Way Transportation Services reported operating income of $35.7 million, down 33% from $53.4 million in the year-ago period. Revenue was $463 million, down 6% from last year's $490.4 million. For the year 2001, Con-Way reported operating income of $157.5 million, down 31% from $227.3 million in 2000. Revenue of $1.9 billion was down 6% from $2 billion.
For the fourth quarter, Emery Worldwide reported an operating loss of $366.4 million, including $311.7 million of restructuring charges and $38.8 million of duplicate aircraft costs, compared with operating income of $14.5 million in the year-ago period. Revenue was $460 million, down 36% from $723.8 million a year ago, which included $80.7 million from the Express Mail contract that was terminated August 26, 2001. For the year 2001, Emery reported an operating loss of $790.3 million, including $652.2 million of restructuring charges, $55.8 million of aircraft costs and a $4.7 million loss from a legal settlement, compared with operating income of $28.4 million in 2000, which included an $11.9 million loss from the termination of certain aircraft leases, Revenue was $2 billion, down 22% from $2.6 billion in 2000.
For the fourth quarter, Menlo Logistics reported an operating loss of $2.7 million, including the additional $9.5 million unusual loss from the business failure of a customer, compared with operating income of $8.6 million in the prior-year period, and revenue of $219.4 million, up 1% from $216.7 million in the prior-year period. For the year, Menlo Logistics reported an operating loss of $15.8 million, including a $47.5 million unusual loss consisting mostly of the write-off of a customer receivable, compared with operating income of $33.3 million in 2000, and revenue of $898.2 million, up 1% from $890.8 million in the prior year.
Covenant Transport, Chattanooga, Tenn., saw fourth-quarter revenue drop 6% to $136 million from $144.9 million in the fourth quarter of 2000. Net income before an after-tax charge to reflect an impairment in tractor values decreased 68% to $1.3 million from $3.9 million a year earlier. Including the impairment charge, net loss was $8.3 million.
For the year, revenue decreased 1% to $547 million from $552.4 million during 2000. Net income before the impairment charge fell 76% to $2.9 million from $11.9 million in 2000. Including the charge, the company had a net loss of $6.7 million.
"General freight volumes during the fourth quarter were not too bad," said Chairman, President and CEO David R. Parker. "The economy seemed to stabilize and we believe the record number of trucking failures eased the over-capacity of equipment somewhat. Covenant's miles per tractor declined only 1.5% versus the fourth quarter of 2000 despite a significant drop in the percentage of the fleet comprised of team-driven tractors, which generate substantially higher mileage. Revenue per total mile increased $.01 per mile versus the third quarter and was only one half cent per mile below the fourth quarter of 2000. Overall, the revenue side of our operation seems to be stabilizing as we maintain our fleet size until demand strengthens.”
Commenting on the impairment charge, Parker explained that during the fourth quarter Covenant recognized an impairment charge relating to approximately 1,770 of its approximately 2,100 model year 1998 through 2000 in-use tractors. A used-truck glut has caused the value of the tractors to fall below both historical levels and the carrying values on Covenant's financial statements. The company is negotiating a purchase and trade agreement with Freightliner covering the sale of all of its model year 1998 through 2000 tractors and the purchase of an equal number of replacement units.
Thanks to continued international growth and a holiday shipping season that ended strongly, United Parcel Service, Atlanta, reported a small gain in fourth quarter revenue and an overall solid performance despite the U.S. recession.
Earnings per share exceeded the company's guidance. For the final quarter of 2001, revenues totaled $8.1 billion, up 2.4% compared to the same period a year earlier. Consolidated operating profits declined 9.5% during the period to $1 billion. Net income declined to $645 million compared to the $724 million reported during the prior year.
"Our cost controls remained highly effective and served to mitigate the effects of the U.S. slowdown, even as we continued to effectively position UPS for the coming economic rebound," said UPS Chief Financial Officer Scott Davis. "During the quarter, our international operation resumed its growth and profitability and the logistics and freight segments also posted gains."
UPS's international export volume grew an industry-leading 8%, led by a strong 15% gain in European export volume. Volume growth originating in Asia rebounded and improved 7% during the quarter. UPS's total 4th quarter results reflected a moderate
U.S. Xpress Enterprises, Chattanooga, Tenn., announced that operating revenues for the fourth quarter increased 3% to $201.6 million, compared with $195.7 million for the same quarter a year ago. The company incurred a net loss of $599,000 for the quarter, compared to a loss of $1.8 million in the fourth quarter of 2000 before a one-time charge.
For 2001, operating revenues increased 1.4% to $798 million from $787.1 million in the prior year. However, the company reported a net loss of $1.1 million for the year, most of which resulted from fees and expenses associated with amendments to the company's revolving credit facility and a terminated financing transaction. The compares to 2000 results of $3.5 million in net income (before the one-time charge).
"Although we continued to encounter a difficult economy and freight environment throughout 2001, especially in the long-haul segment of our truckload operations, our truckload operations and the floor covering logistics operations within CSI/Crown were profitable for both the quarter and the year," said Patrick Quinn, Co-Chairman. "The freight environment did, however, lead to lower utilization, as measured by revenue per tractor per week, and a higher percentage of empty miles. The impact of these factors on our truckload margins was mitigated to an extent by a reduction in fixed operating costs and lower fuel prices."
Results for both the quarter and the year were affected by operating losses from the start-up and expansion of a division of CSI/Crown that provides expedited airport-to-airport services to the air cargo industry.
During 2001, U.S. Xpress expanded its tractor fleet by nearly 9 percent, including a 25-percent increase in owner-operators. The company cut fixed costs in its truckload operations and expanded its regional and dedicated truckload businesses. Partly as a result of these initiatives, the company expects operating results to improve significantly in 2002.
The parent of several trucking and transportation operations, CNF, Palo Alto, Calif., reported a fourth-quarter net loss of $217.1 million on revenue of $1.14 billion. For the year 2001, revenue totaled $4.86 billion, with a net loss of $402.9 million.
2001 losses were triggered by restructuring charges at Emery Worldwide and the airline subsidiary, losses at Menlo Logistics due to the failure of a customer, a legal settlement and corporate charges. In the plus column was a cash settlement with the U.S. Postal Service related to the former Priority Mail contract, which the USPS moved to FedEx.
"With the economy in recession for the entire year and the loss of postal revenues, sales fell to a level we haven't seen since 1998," said Gregory L. Quesnel, president and CEO.
For the fourth quarter, Con-Way Transportation Services reported operating income of $35.7 million, down 33% from $53.4 million in the year-ago period. Revenue was $463 million, down 6% from last year's $490.4 million. For the year 2001, Con-Way reported operating income of $157.5 million, down 31% from $227.3 million in 2000. Revenue of $1.9 billion was down 6% from $2 billion.
For the fourth quarter, Emery Worldwide reported an operating loss of $366.4 million, including $311.7 million of restructuring charges and $38.8 million of duplicate aircraft costs, compared with operating income of $14.5 million in the year-ago period. Revenue was $460 million, down 36% from $723.8 million a year ago, which included $80.7 million from the Express Mail contract that was terminated August 26, 2001. For the year 2001, Emery reported an operating loss of $790.3 million, including $652.2 million of restructuring charges, $55.8 million of aircraft costs and a $4.7 million loss from a legal settlement, compared with operating income of $28.4 million in 2000, which included an $11.9 million loss from the termination of certain aircraft leases, Revenue was $2 billion, down 22% from $2.6 billion in 2000.
For the fourth quarter, Menlo Logistics reported an operating loss of $2.7 million, including the additional $9.5 million unusual loss from the business failure of a customer, compared with operating income of $8.6 million in the prior-year period, and revenue of $219.4 million, up 1% from $216.7 million in the prior-year period. For the year, Menlo Logistics reported an operating loss of $15.8 million, including a $47.5 million unusual loss consisting mostly of the write-off of a customer receivable, compared with operating income of $33.3 million in 2000, and revenue of $898.2 million, up 1% from $890.8 million in the prior year.
Covenant Transport, Chattanooga, Tenn., saw fourth-quarter revenue drop 6% to $136 million from $144.9 million in the fourth quarter of 2000. Net income before an after-tax charge to reflect an impairment in tractor values decreased 68% to $1.3 million from $3.9 million a year earlier. Including the impairment charge, net loss was $8.3 million.
For the year, revenue decreased 1% to $547 million from $552.4 million during 2000. Net income before the impairment charge fell 76% to $2.9 million from $11.9 million in 2000. Including the charge, the company had a net loss of $6.7 million.
"General freight volumes during the fourth quarter were not too bad," said Chairman, President and CEO David R. Parker. "The economy seemed to stabilize and we believe the record number of trucking failures eased the over-capacity of equipment somewhat. Covenant's miles per tractor declined only 1.5% versus the fourth quarter of 2000 despite a significant drop in the percentage of the fleet comprised of team-driven tractors, which generate substantially higher mileage. Revenue per total mile increased $.01 per mile versus the third quarter and was only one half cent per mile below the fourth quarter of 2000. Overall, the revenue side of our operation seems to be stabilizing as we maintain our fleet size until demand strengthens.”
Commenting on the impairment charge, Parker explained that during the fourth quarter Covenant recognized an impairment charge relating to approximately 1,770 of its approximately 2,100 model year 1998 through 2000 in-use tractors. A used-truck glut has caused the value of the tractors to fall below both historical levels and the carrying values on Covenant's financial statements. The company is negotiating a purchase and trade agreement with Freightliner covering the sale of all of its model year 1998 through 2000 tractors and the purchase of an equal number of replacement units.
Thanks to continued international growth and a holiday shipping season that ended strongly, United Parcel Service, Atlanta, reported a small gain in fourth quarter revenue and an overall solid performance despite the U.S. recession.
Earnings per share exceeded the company's guidance. For the final quarter of 2001, revenues totaled $8.1 billion, up 2.4% compared to the same period a year earlier. Consolidated operating profits declined 9.5% during the period to $1 billion. Net income declined to $645 million compared to the $724 million reported during the prior year.
"Our cost controls remained highly effective and served to mitigate the effects of the U.S. slowdown, even as we continued to effectively position UPS for the coming economic rebound," said UPS Chief Financial Officer Scott Davis. "During the quarter, our international operation resumed its growth and profitability and the logistics and freight segments also posted gains."
UPS's international export volume grew an industry-leading 8%, led by a strong 15% gain in European export volume. Volume growth originating in Asia rebounded and improved 7% during the quarter. UPS's total 4th quarter results reflected a moderate
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