Subsidiary Sell-Off Hurts USF’s Earnings

Chicago-based LTL conglomerate USF Corp. said net income declined to $12.1 million on lower revenues of $582 million for the third quarter due in large part to its decision to shut down its Northeastern LTL subsidiary, USF Red Star, on May 23. USF Red Star incurred shutdown costs and operating losses during the third quarter of $7.8 million, cutting into USF’s overall profits, it said.

For the first nine months of 2004, USF said net income dropped to $17.2 million on revenues of $1.81 billion, compared to net income of $23.8 million on smaller revenues of $1.74 billion its posted over the same period in 2003.

Richard P. DiStasio, president and CEO, said USF is re-entering the Northeast market via its USF Holland subsidiary in an attempt to regain revenue and LTL market share in the region.