Copyright 2007, Traffic World, Inc.
A strategic acquisition added revenue for Target Logistics but it cut into profits.
The Baltimore-based company saw its net profit through the first three months of 2007 fall almost by half, to $340,150, compared with $609,642 in the same period a year ago.
"Despite achieving our 18th consecutive profitable quarter, (fiscal) third quarter net income was disappointing, primarily because of continued losses by our New York City station following our Discovery acquisition last year, and less than anticipated gross profit margin improvement as a result of sluggish value-added services growth," said Stuart Hettleman, Target president and CEO.
The net profit also fell through the first nine months of Target''s fiscal year, from $2.1 million through March 31, 2006, to $1.2 million through March 31 of this year.
The lag in earnings came as Target saw revenue in the first three months of 2007 grew nearly 18 percent, to $43.7 million from $37.1 million in the same quarter of 2006. Revenue for the first nine months of Target''s fiscal year hit $134.7 million from $119.9 million in the comparable period a year earlier.