Allied Holdings and Celadon were hit by U.S. automaker cutbacks in the first quarter.


Celadon Group, Indianapolis, announced its third quarter results for its fiscal quarter that ended March 31. Revenue was $88.2 million, compared with the 2000 March quarter of $90.5 million. A net loss of $1.6 million compares to net loss of $.7 million in the prior year quarter. The net loss attributable to the trucking operations was 12 cents per share. The net loss attributable to TruckersB2B operations declined to 2 cents per share, compared with five cents in the March 2000 quarter. In addition, the costs associated with the postponed IPO of TruckersB2B of $800,000, or 7 cents per share, were expensed in the current quarter results.
Celadon blames the trucking losses on higher fuel costs and reduced automotive revenue as a result of the slowing economy.
"The automotive manufacturers and suppliers represent a meaningful part of our business," said CEO Steve Russell. However, significant increases in non-automotive freight, combined with continued strong demand in key Mexican markets and an increase in seated truck capacity, enabled the company to return to profitability in March, the first profitable month since November.
TruckersB2B became cash flow positive in April, and is expected to continue to demonstrate positive cash flow for the foreseeable future. Russell added, "Although it took us longer to cross the breakeven line than originally anticipated, we believe that TruckersB2B is being increasingly accepted in the industry as the procurement source for the smaller carriers."

Allied Holdings, Decatur, Ga., reported rvenues for the first quarter of 2001 were $218.2 million, compared with revenues of $282.9 million for the first quarter last year. The company had a net loss of $18.9 million, versus a loss of $1 million during the first quarter last year.
Like Celadon, Allied's Automotive Group was hurt by the fact that production for the "Big Three" automakers dropped by 23 percent. New vehicle production in the United States and Canada in the first quarter of 2001 was at its lowest level since 1993 in a first quarter without labor disputes, says the company. However, production cuts helped work down inventories, and new vehicle inventories are now just slightly higher than the 61-day supply at the end of the first quarter in 2000. Nevertheless, Allied officials expect vehicle deliveries to decline approximately 15 percent in the second quarter followed by an approximate 10 percent decline in the third quarter. Deliveries are expected to stabilize by the fourth quarter, increasing approximately 2 percent.
The company has embarked on an aggressive cost cutting plan, with expected capital expenditures for 2001 reduced to between $20 to $25 million. The Automotive Group currently has approximately 15 percent of its drivers on layoff.