Lost line-haul business impacts ABX in 3Q

Losing a contract to manage over-the-road freight operations of DHL Network Operations Inc. took a bite out of ABX Air Inc.’s third-quarter profit
The company said late Thursday it earned USD6.6 million, or 11 cents a share, for the quarter ended Sept. 30, down 10.8 percent from USD7.4 million, or 13 cents a share for the same quarter a year ago. Revenue dropped 24 percent to USD281.3 million from USD369.9 million in third-quarter 2005.

DHL, a subsidiary of Deutsche Post World Net of Germany, assumed management of its line-haul business in May, which ABX previously managed, pulling the Wilmington-based company’s profit down, ABX said. This year’s third quarter includes a USD257,000 impairment charge related to the loss of that contract.
DHL’s line-haul business contributed USD74.8 million revenue for ABX during last year’s third quarter.

For the first nine months of the year, ABX reported income of USD21.1 million, or 36 cents per share, which was flat compared to last year’s earnings of USD21.2 million. Revenue fell to USD954.1 million from USD1.1 billion a year ago.