ABX’s Profit Declines in 4Q, 2005

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reight airline ABX Air Inc. said its fourth-quarter profit fell to $9.1 million or 16 cents per share, compared with $18.1 million or 31 cents per share a year earlier.

Revenue rose 10% to $396.6 million, the company said in a statement. ABX blamed the lower earnings on reduced revenue incentives from delivery company DHL.

For the full year, net income was $30.3 million or 52 cents per share, down from $37 million or 63 cents in 2004.

ABX also said last week that DHL, a subsidiary of Deutsche Post, plans to reduce its business with ABX in the coming months. As a result, ABX will no longer operate DHL's hub in Allentown, Pa., and DHL will take over the over-the-road truck line-haul network that had been managed by ABX.

"While the loss of DHL revenues associated with these services is not welcome news, we believe that the company is positioned to replace the affected earnings and cash flows through continued growth in its non-DHL business volumes," said ABX President Joe Hete.

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