Red ink rising at Cannon Express
Truckload carrier Cannon Express lost more than $2.37 million on revenues of $18.5 million for its fiscal third quarter, compared to losses of just $795,777 on revenues of $20.8 million in the same period last year. Losses for the first nine months of fiscal 2002 totaled $6.95 million on revenues of $60 million, compared to losses of $3.11 million on revenues of $63.9 million last year.
Chairman & president Dean Cannon said the company's losses resulted from a soft freight market and a shortage of qualified drivers. In March, he laid off 50 corporate non-driver personnel and decided to forgo his salary this year.
That has helped trim Springdale, AR-based Cannon's annual operating expenses by more than $2.5 million, but Cannon cautioned that those cuts do not assure the company will be successful in increasing its revenues to the level of profitability in the near future.
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