Troubled truckload carrier Cannon Express is eliminating jobs and executive salaries in bid to stem its rapidly rising losses.
Chairman & president Dean Cannon said the company has laid off 50 corporate non-driver personnel. He also decided to forgo his salary this year as well as that of his wife, treasurer Rose Marie Cannon, and allow current corporate office facilities owned by the Cannon family to be used by Cannon Express at no charge.
Springdale, AR-based Cannon Express lost over $2.5 million on revenues $19.7 million in its second fiscal quarter of 2002, compared to losses of $1.24 million on $20.4 million in revenue in the second fiscal quarter the year before.
For the first six months of fiscal 2002, Cannon has lost $4.75 million on $41.5 million in revenue, compared to losses of $2.32 million on $43 million in revenue for the first six months of the previous year.
Cannon said it's losing money because the volume of business it's accustomed to has been lower and the opportunities for business from new customers have been fewer due to the weaker economy and the lower number of shipments by manufacturers.