HOUSTON, Oct. 27 /PRNewswire-FirstCall/ -- EGL, Inc. (Nasdaq: EAGL)
announced that it expects to report fully diluted earnings per share for the
third quarter of 2003 of $0.12, compared to earlier management guidance of
$0.18 to $0.20. Diluted earnings per share for the third quarter of 2002 were
$0.12.
"Airline price increases out of Asia were not matched with corresponding
increases to EGL's customers due to weak air freight demand, resulting in an
impact to earnings per share of approximately $0.05," explained James R.
Crane, Chairman and Chief Executive Officer. "This slow start to the normally
seasonally strong August-September period offset continued improvements from
North America volumes and improvements from the logistics projects in Europe.
Additionally, a settlement with Kitty Hawk, Inc., a wholesale transportation
provider, stemming from an August, 2001 dispute was resolved through
arbitration during the quarter and unfavorably impacted our results by
$2.3 million."
Gross revenue for the third quarter of 2003 increased 15% from the third
quarter of last year, while net revenue increased 7%. Net revenue margins
deteriorated 110 basis points to 34.1% from the second quarter of this year
and by 240 basis points from the third quarter of last year on the impact from
the Asia pricing and the arbitration settlement.
Earnings Conference Call
EGL, Inc. plans to host a conference call for shareholders and the
investing community on November 11, 2003 at 11 a.m. Eastern time (8 a.m.
Pacific) to review results for the quarter ended September 30, 2003. The call
can be accessed by dialing (719) 457-2662, access code 692215 and is expected
to last approximately 60 minutes. Callers are requested to dial in at least
5 minutes before the start of the call. The call will also be available
through live webcast on the company's website, http://www.eaglegl.com , on the
Investor Relations page. An audio replay will be available until Tuesday,
November 25, 2003 at (719) 457-0820, access code 692215.
Houston-based EGL, Inc. operates under the name EGL Eagle Global
Logistics. EGL is a leading global transportation, supply chain management
and information services company dedicated to providing superior flexibility
and fewer shipping restrictions on a price competitive basis. With 2002
revenues exceeding $1.86 billion, EGL's services include air and ocean freight
forwarding, customs brokerage, local pickup and delivery service, materials
management, warehousing, trade facilitation and procurement, and integrated
logistics and supply chain management services. The Company's shares are
traded on the NASDAQ National Market under the symbol "EAGL".
CAUTIONARY STATEMENTS
The statements in this press release (and statements in the conference
call referred to above) regarding initiatives in North America, Asia and
Europe, third quarter and total year results and diluted earnings per share,
and other statements which are not historical facts, are forward looking
statements. Such statements involve risks and uncertainties including, but
not limited to, general economic conditions, the results of litigation, the
timing and effects of any improvements in the regions and industry sectors in
which the Company's customers operate, infrastructure improvements, ability to
manage and continue growth, competition and other factors detailed in the
Company's 2002 Form 10-K, proxy statement/prospectus and other filings with
the Securities and Exchange Commission. Should one or more of these risks or
uncertainties materialize (or the consequences of such a development worsen),
or should underlying assumptions prove incorrect, actual outcomes may vary
materially from those forecasted or expected. The Company disclaims any
intention or obligation to update publicly or revise such statements, whether
as a result of new information, future events or otherwise.
SOURCE EGL, Inc.
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Related links:
http://www.eaglegl.com
CONTACT:
Elijio Serrano, Chief Financial Officer of
EGL, Inc., +1-281-618-3665
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