New Jersey-based CD&L, which provides customized, time-critical ground delivery and logistics services, said its 2000 revenues climbed to over $170 million vs. $158.3 million in 1999, yet it lost over $6.2 million for the year, vs. net income of $950,000 in 1999. In the last three months of CD&L’s fiscal year 2000, the company said it lost over $4.2 million.
William Brannan, the company’s president & COO, said CD&L’s losses were the result of many factors, including cumulative write-offs from the closure of marginal operating centers and cancellation of unprofitable distribution clients. The company also increased monetary reserves to cover health, workers’ compensation and auto liability insurance, along with funds for various legal matters that are currently being settled. High fuel prices and driver wage increases also contributed to the losses, Brannan said.
He added that CD&L has increased its relationship with contract carriers, thereby reducing its vehicle fleet more than 20%, which should help reduce insurance costs and operating margins during its current fiscal year.