Thomas L. Gallagher | Nov 13, 2009 12:46PM EST
Air Transport Services Group came through the third quarter with nearly the same operating income as a year earlier despite the scaled-down U.S. operations of DHL, the company’s principal customer.
Pre-tax earnings from continuing operations were essentially flat at $4.6 million as ATSG offset the lost DHL business with expanded leasing operations and ACMI operations for other customers.
Revenue from continuing operations, reflecting the loss of DHL business, fell 27 percent to $174.2 million, ATSG said. Subsidiary ABX Air’s operations for DHL were sharply curtailed in January 2009 as DHL chose to limit its package delivery service within the United States to international shipments.
Consolidated net earnings fell 25 percent to $3.7 million as the company had to do without a $1.3 million non-recurring tax benefit recorded in the third quarter last year.
“Our results for the third quarter are consistent with our 2009 goals, which are to roll out more converted freighters and related air cargo services for new customers, drive out costs and strengthen our balance sheet to remain competitive in a weak but reviving economy, and complete the details of a new, more comprehensive relationship with our ABX Air flight crews and with DHL,” ATSG President and CEO Joe Hete said. “That work continues, but we expect to report more progress later this year and in 2010 as economic conditions improve.”
ABX Air announced Nov. 13 a tentative amended collective bargaining agreement with representatives of Local 1224 of the International Brotherhood of Teamsters, which represents approximately 600 current and former ABX Air flight crew employees. The agreement is subject to ratification by Local 1224 members and a new agreement between ABX Air and DHL for airline operations in the United States, replacing the current ACMI Agreement.
Contact Thomas L. Gallagher at tgallagher@joc.com.
