Trucking conglomerate USFreightways Corp. (USF) said its net income in the third quarter dropped due to losses within its freight forwarding operations.
USF said its net income fell to $5.3 million overall on revenues of $634.5 million, down from net income of $9.7 million on revenues of $618.6 million in the same period last year.
Chicago-based USF said its freight forwarding business lost $8.1 million this quarter after taxes, which includes a $4.7 million payment to the operations former owners and business partners in the United Kingdom.
The carrier said it would sell its USF Worldwide and USF Worldwide Logistics (UK) Ltd. this month and said it expects to take a $10 million to $12 million charge in the fourth quarter for those deals. Net income of $13.4 million from its truckload, LTL and other logistics business kept USF out of the red in the third quarter, but was a decline from the $16 million those units earned in the same period of 2001.
CEO Samuel Skinner noted that overall freight volume has risen steadily, especially since Consolidated Freightways ceased operations. He said he predicts continued strong freight demand through the end of the year.