CEO Pat Blake said the carrier's revenue decline of 19.4% for the quarter was the result of the difficult economic environment, unusual competitive pressures in the marketplace and the loss in the fourth quarter of a major account to very aggressive competitive pricing.
"These factors caused total tonnage to decrease 17.1%, though revenue per hundredweight, excluding fuel surcharges, was up 0.7%," he said.
He noted that Vancouver, WA-based CF posted a net loss of $1.8 million on revenue of $574.6 million in the first quarter of 2001, results that included capital gains of $19.0 million, $11.6 million net of tax, from the sale of CF's Portland, Ore. administrative facility. However, the economic slowdown that began last year is still affecting the LTL industry, said Blake.
"The impact of the economic slowdown is apparent throughout the entire LTL industry," Blake said. "We are on schedule with a projected $125 million cost reduction run rate by the end of this year. As part of our strategy, we are continuing programs to improve both our freight mix and yield and we have begun to see encouraging revenue and mix trends in April."
Blake added that during the quarter, CF put nearly $50 million of new financing in place. He said the company also continues to evaluate ways to best use its assets to enhance its capital structure.
