Airborne Warns of 4Q Loss, Plans Rate Hike
Airborne Inc. () said Wednesday that it expects to report a loss ranging from 23 cents to 33 cents a share in the fourth quarter and plans to implement a rate increase.
Airborne Inc. is the holding company for Airborne Express, which delivers small packages, documents and freight domestically and to 200 countries.
The Seattle-based airfreight and parcel carrier said overall domestic shipments grew more than 3.5% over fourth-quarter 1999, but severe winter weather, higher fuel costs and extended holiday service held earnings down.
The @home business-to-consumer service exceeded management’s goal of 65,000 shipments a day – but the company incurred additional costs in filling those orders.
Airborne expects to implement a rate increase on one-third of its domestic business by Feb. 15, and will phase in increases on most of the remainder of the domestic business over the next several quarters. It also plans price adjustments to the @home product.
 |