November 2, 2006 12:00 PM, EST

Target Logistics’ Quarterly Earnings Slip

Click here to write a Letter to the Editor.

reight forwarder Target Logistics said Thursday net income for its fiscal first quarter ended September 30 declined to $277,000 or 1 cent a share, down from $477,000 or 2 cents in the 2005 first quarter.

Revenue in the quarter rose 20% from last year to $43.4 million, while operating income fell to $569,952 from $880,519, the logistics provider said in a statement.

“Less than expected revenue with smaller gross profit margins from our Discovery ac-quisition, a greater percentage of international import revenue overall and a lower amount of domestic value-added services caused gross margins to decline, and led to a reduction in net income for the quarter compared to last year,” said Stuart Hettleman, chief executive officer of Target Logistics.

The company acquired Discovery Air Cargo, a freight forwarder that operates in the New York area, in June. (Click here for previous coverage.)

Target also said it expects to earn between 12 and 15 cents a share in the fiscal year ending June 30, 2007, compared with 13 cents a share in the 2006 fiscal year.