CD&L Sees Loss on Rising Revenues.

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.