Frozen Food Express Loses $5.2 Million

Frozen Food Express Industries lost $5.2 million in the second quarter as the company struggled with lower volume and freight rates. The loss followed a $6.1 million loss in the first quarter. The temperature-controlled truckload and less-than-truckload carrier earned a profit of $274,000 in the second quarter of 2008.

Revenue excluding fuel surcharges decreased 11.8 percent to $84.5 million from $95.8 million as freight rates declined 3.5 percent to $1.37 per loaded mile for truckload services from $1.42 in the comparable quarter a year ago.

"As we report our second quarter ended June 30, 2009 the U.S. economy remains in a severe recession and we continue to face adverse economic pressures,” said Stoney M. ("Mit") Stubbs, president and CEO. “We continue to experience significant revenue and profit challenges in the current environment. While our results reflect these revenue and profit challenges, we continue to take steps to reduce our cost structure while focusing on initiatives to incrementally increase volume and margins."

FFEX reduced non-driver headcount by approximately 200 positions or 23 percent since Jan. 1, including approximately 50 positions that were eliminated in July. Since the beginning of the year, the company suspended its 401(k) match, reduced standard work week hours, decreased recruiting efforts, reduced travel expenses and initiated early termination of equipment leases.

Contact Thomas L. Gallagher at tgallagher@joc.com.