Profit at Express-1 Expedited Solutions fell 99 percent to $5,000 in the first quarter as a result of falling surcharge revenue and excess capacity.
Express-1, a non-asset based carrier specializing in express delivery and freight forwarding, saw revenue fall 15 percent to $20.1 million in the quarter compared with the same period a year ago.
In addition to the weak economy, falling fuel prices also had a negative impact on the company’s finances as fuel surcharge revenue was down year-over-year for the quarter.
The Buchanan, Mich.-based company was also hurt by the struggling automotive industry.
“As the automotive business has declined, so has our revenue and related accounts receivables associated with the industry” said CEO Mike Welch. As a result, the company no longer has a single customer representing over 5 percent of outstanding receivables, and the combined total of the Big Three automotive manufacturers represents less than 4 percent of receivables as of March 31, Welch said.
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