Losses grow for Cannon Express

Nov. 19, 2002
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
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.

About the Author

Sean Kilcarr | Editor in Chief

Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

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