Financial woes continue for EGL
Troubled third-party logistics provider EGL took a loss of $2.4-million in the third quarter, along with a charge of $6.2 million related to a legal settlement with the Equal Employment Opportunity Commission (EEOC). That is compared with net income of $18.3 million for the same quarter last year.
EGL added that its third quarter losses included pre-tax charges of $5.6 million related to the sublease of five Boeing 727 cargo aircraft. The company said its gross revenues were down as well for the third quarter of 2001, dipping to $415 million, compared to $490.7 million in the same period last year.
Houston-based EGL has had a rough year, largely from the EEOC lawsuit filed on May 1, 2000 on behalf of eight EGL employees. EGL said it continues to deny the EEOC’s job discrimination allegations, but said it entered into the settlement in order to avoid further legal expenses and disruption related to ongoing litigation. The voluntary settlement totals $9 million, which EGL has paid out after exhausting all of its court appeals.
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