Troubled truckload carrier Cannon Express lost $3.13 million on revenue of $18.8 million in the first quarter of the 2003 fiscal year.
Cannon's losses include charges designed to cut down on operating expenses. That includes the cost of adopting a new liability insurance policy as of November 1, which should save Cannon approximately $2.8 million per year, said CEO Bruce Jones.
Jones added that the Springdale, AR-based company's fleet is under-utilized because of weak freight demand and a shortage of qualified drivers. He said Cannon plans to sell approximately 200 trucks and 315 trailers in order to increase the utilization and profitability of its equipment.
In an effort to cut costs, Cannon closed its logistics and intermodal operations in the fourth quarter of fiscal 2002. It also said it would bring routine vehicle maintenance in-house to its Springdale shop to reduce outside costs.