Losses Widen At Cannon Express
February 14, 2000
Revenue for Cannon Express, Springdale, AR, in its 2nd fiscal quarter and the six months period of fiscal 2000 ended Dec. 31, 1999 dropped and its losses widened.
Revenues for the quarter were nearly $21.3 million, compared to $24.1 million in the 2nd fiscal quarter of 1999. It's net loss for the quarter of $326,001 was more than double the $140,140 it had in the 2nd fiscal quarter of 1999.
Revenues for the first six months of fiscal 2000 were $44.2 million, compared to $48.8 million in the same period in 1999. Net income for the period was $175,102, compared to a loss of $77,948 in the six months period of fiscal 1999.
The company says it was hurt by a shortage of qualified drivers to operate its trucks during the last quarter. Fleet size decreased to an average of 771 trucks for the quarter, and Cannon also traded in some of its trucks early due to the driver shortage. The company raised starting base pay for drivers in January ranging from 2 to 4 cents per mile, but says more increases may be needed.
It's seeking increased rates and fuel surcharges from its customers but says there are no guarantees they will stick.