ABX Air, Inc. Reports Second Quarter Earnings of $5.8 Million: "ABX Air, Inc. Reports Second Quarter Earnings of $5.8 Million
WILMINGTON, Ohio--(BUSINESS WIRE)--Aug. 3, 2004--ABX Air, Inc. (OTC:ABXA) reported today that for the quarter ended June 30, 2004, net earnings were $5.8 million, or $0.10 per share, on revenues of $274.7 million. Net earnings improved from the second quarter of 2003, when ABX earned $3.6 million, or $0.06 per diluted share on revenues of $297.0 million. For the first half of 2004, net earnings increased to $11.8 million, or $0.20 per share, compared to net earnings of $7.2 million, or $0.12 per diluted share, in the first half of 2003. Comparisons between 2003 and 2004 financial results are complicated by the Company's separation from its former parent, Airborne, Inc. ('Airborne') in August of 2003, and the differences in ABX Air's contractual mark-up and cost structure after the separation as compared to when the Company was a wholly-owned subsidiary of Airborne. Airborne was acquired by DHL Worldwide Express B. V. ('DHL') in August of 2003.
For the second quarter of 2004, ABX's net earnings of $5.8 million included $4.7 million from its two contracts with Airborne/DHL. Under the two contracts, the aircraft, crew, maintenance and insurance agreement ('ACMI agreement'), and a hub and line-haul services agreement ('Hub Services agreement'), ABX earns a base mark-up of 1.75% on eligible costs and can earn an incremental mark-up for meeting certain cost and services goals. The base mark-up resulted in net earnings of $3.7 million, while the incremental mark-up associated with the attainment of cost goals accounted for an additional $1.0 million. Unde"
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