DHL changes negatively impact quarter's revenues for ABX Air
ABX Air Inc. on Wednesday reported revenues of USD 303.6 million and net earnings of USD 6.5 million, or 11 cents per share, for the second quarter.
The Wilmington-based company’s revenues declined USD 47.7 million and net earnings declined USD 300,000, or 1 cent per share, compared with the second quarter of 2005.
Earnings during the second quarter were negatively impacted by the reduction in truck line-haul management services provided to DHL, ABX’s largest customer.
Offsetting the decline in services provided to DHL were improved results from ABX Air’s non-DHL charter operations and increased interest income. Revenues from non-DHL charter operations increased 69 percent to USD 5.4 million, while earnings increased by USD 700,000.
ABX Air also received two contract awards from the U.S. Postal Service to manage surface transfer centers in Dallas and Memphis, Tenn. Joe Hete, president and CEO, said each contract should provide USD 5 million in additional revenues.
