FFE Incurs $5.2 Million Loss in 2Q
Frozen Food Express Industries saw an after tax loss of $5.2 million, or 30 cents a share, during the second quarter, a reflection of lower volumes and pricing pressure
Frozen Food Express Industries saw an after tax loss of $5.2 million, or 30 cents a share, during the second quarter, a reflection of lower volumes and pricing pressures
, the company says. The loss compares with a net income of $274,000, or 2 cents a share, in the second quarter of 2008.
Total revenue for the period fell 26.5 percent to $94.9 million, versus $129 million in 2008. Excluding fuel surcharges, revenue was $84.5 million, an 11.8 percent drop from the year-ago's $95.8 million.
"As we report our second quarter ended June 30, 2009 the U.S. economy remains in a severe recession and we continue to face adverse economic pressures," said Stoney M. Stubbs, president and CEO. "We continue to experience significant revenue and profit challenges in the current environment. While our results reflect these revenue and profit challenges, we continue to take steps to reduce our cost structure while focusing on initiatives to incrementally increase volume and margins."
These steps included cutting its non-driver headcount by about 200, or 23 percent since the beginning of the year. The company cut 50 positions in July. In efforts to reduce operating costs, the company suspended its 401(k) match program, decreased the number of hours in the work week and trimmed its recruiting efforts. Other actions taken include early termination of equipment leases and reduction of travel expenses.
"While we cannot control the volatile trends and uncertain economic conditions, we intend to navigate through the present downturn by remaining focused on improving areas within our control and on achieving progress on three primary goals: maintaining a strong balance sheet, identifying revenue opportunities and cost reductions, and positioning our business to capitalize on an economic recovery when it occurs," Stubbs said.
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