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Forward Air Posts 1Q Loss On Charge, Weak Market

The Associated Press

GREENEVILLE, Tenn. (AP) — Forward Air Corp., an air cargo industry contractor, reported a first-quarter loss on Monday due to a hefty impairment charge and the ongoing recession that has crimped demand for the company's products.

For the quarter ended March 31, the company posted a loss of $3.1 million, or 11 cents per share, compared with profit of $10 million, or 35 cents per share, last year.

Excluding a $7.2 million goodwill impairment charge on its Forward Air Solutions unit, the company earned 4 cents per share, down from 35 cents last year.

Sales slipped nearly 11 percent to $96.6 million from $107.9 million a year ago.

Analysts polled by Thomson Reuters had expected adjusted earnings of 5 cents and sales of $93.5 million.

"Our revenue and profitability continue to be negatively impacted by the severe effects of the current economic recession," Chief Executive Bruce A. Campbell said in a statement.

Looking ahead, Forward Air said it expects second-quarter earnings to range between 6 cents and 12 cents per share, with revenue falling 11 percent to 16 percent year-over-year.

Wall Street is predicting quarterly profit of 15 cents per share on revenue of $110.6 million.

Shares of the company declined $1.52, or 8.4 percent, to finish at $16.53 on Monday.