AIRBORNE REPORTS 4TH-QUARTER LOSS

SMITH ELECTED CHAIRMAN OF SENATE MERCHANT MARINE SUBCOMMITTEE    As anticipated, Airborne Inc., the holding company for Airborne Express, reported a fourth-quarter loss, due to higher operating costs and poorer than expected results form its core domestic product.
   Airborne reported a loss of $11.9 million for the fourth quarter, compared to earnings of $17.3 million in the year-earlier quarter.
   Fourth-quarter revenue rose 5.3 percent to $847.9 million. Domestic revenue rose 5.5 percent while international revenues grew 3.3 percent.
   Domestic shipment volume improved 4.0 percent to 83.1 million, buoyed by seasonal shipment volume in the airborne@home service. Airborne shipped an average of 87,000 units per day for the airborne@home service, well above the target of 65,000 units per day.
   “Growth in our airborne@home product, especially robust in December, led to improved revenues for the quarter and year,” said Robert Cline, chairman and chief executive officer. “However, the decline in our higher yielding core domestic product and added costs associated with the severe weather, higher fuel costs and extended holiday service prohibited us from improving earnings over the third quarter.”
   Growth of airborne@home shipments also forced higher-than-expected costs to linehaul, sort and deliver the shipments, Cline added.
   For the year, net earnings totaled $28.5 million, compared to $91.2 million in 1999. Revenues grew 4.4 percent to $3.3 billion.
   Airborne on Monday announced a new pricing structure for domestic services, including a rate increase, a shift to zone-based pricing and a non-scheduled pickup fee.
   “We estimate approximately half of our domestic business is eligible for the various rate and fee increases by the end of March, and the balance will be phased in as existing contracts are renewed,” said Carl Donaway, president and chief operating officer. “Pricing of our airborne@home service will be refined so that it more accurately matches the delivery costs involved in transporting and servicing the shipments that move through our system.”
   The company will also apply a rate increase to its international express segment.
   Airborne anticipates returning to operating profitability in the second half of 2001, depending on rollout of various growth strategies and projections for an improving economy in the second half of 2001.