Financial problems for third-party logistics provider EGL continue to worsen as it took a $7.4 million charge on top of $3.9 million in losses in the first quarter of this year.
Houston-based EGL is a freight-forwarding operation that works across all modes of transportation. In the first quarter, it had to take a $7.4-million charge to cover losses associated with investments in now-defunct air cargo carrier Miami Air. The $3.9-million loss came from readjusting its financial statements to be in line with new accounting rules, said EGL.
The company also said its first-quarter net revenues declined 3% from the continued weakness in the U.S. and Asian economies. The firm also cut capital expenditures to $4 million this quarter, as compared to $17 million in the same period last year.
Cash and short-term investments at the end of the quarter increased to $114 million against $8 million of short-term notes payable and $101 million of long-term notes payable, leaving EGL with essentially no net debt reflected on the balance sheet, it said.