Program to Reduce Pollution, Improve Children's Health

Earth Day Network, The Clean Air Campaign and UPS today announced the launch of a nationwide No-Idling Campaign. The program, designed for schools from grades K-through-12, is aimed at reducing harmful vehicle emissions around children and protecting the environment by eliminating unnecessary vehicle idling at schools across the country.

Made possible by a combined $350,000 grant from The UPS Foundation, Earth Day Network has partnered with The Clean Air Campaign, a Georgia non-profit, to take its program's statewide success to a national level. This school year alone, The Clean Air Campaign's No-Idling initiative has impacted more than 220,000 students, faculty, parents and members of the community. This campaign provides turnkey solutions through toolkits for administrators and teachers and collateral and educational materials for bus drivers and parent drivers.

"Turning off your engine while waiting to pick up your child is such a simple step to help everyone breathe cleaner air, save money on gas and reduce emissions all at the same time," said Kathleen Rogers, president of Earth Day Network. "Vehicle idling wastes fuel and money. In fact, idling for 30 seconds uses more fuel than restarting your engine, and idling for 10 minutes a day wastes an average of 24.6 gallons of gas per year."

Providing a healthier environment for children is a top priority of the No-Idling Campaign. "Children are more negatively affected by car exhaust than adults because they are closer to the ground and their lungs are still developing, but drivers just don't think about it," added Kevin Green, executive director of The Clean Air Campaign. "In fact, particle pollution and ground level ozone and can aggravate asthma and contribute to increased upper-respiratory infections."

The No-Idling Campaign not only targets drivers but also engages children, helping to instill a sense of environmental responsibility in the next generation. Program materials for educators such as signage for car pool lines, classroom curriculum, pledge cards and fliers will be available for download at the Earth Day Network web site.

"Environmental sustainability is one of The UPS Foundation's newest focus areas," said Lisa Hamilton, president of The UPS Foundation. "So we are thrilled to be able to expand on the tremendous success of The Clean Air Campaign in Georgia. By also partnering with The Earth Day Network, we look forward to protecting young lungs and improving the environment across the country."

About Earth Day Network
Earth Day Network, www.earthday.net, grew out of the original Earth Day in 1970. The non-profit organization seeks to grow and diversify the environmental movement worldwide, and to mobilize it as the most effective vehicle for promoting a healthy, sustainable planet. It pursues these goals through education, politics, and consumer activism. Earth Day Network has a global reach with a network of more than 17,000 partners and organizations in 174 countries. More than 1 billion people participate in Earth Day activities, making it the largest secular civic event in the world.

About Clean Air Campaign
The Clean Air Campaign is a not-for-profit organization that works with Georgia's employers, commuters and schools to encourage actions that result in less traffic congestion and better air quality. The Campaign works with more than 1,600 employers to create custom commute options programs and annually helps thousands of commuters find commute alternatives that work for them, providing financial incentives to get them started. The Clean Air Campaign also protects public health by issuing Smog Alerts and empowers students, parents and teachers to play a positive role in reducing traffic and cleaning the air through a multi-faceted Clean Air Schools program reaching elementary, middle and high schools.

About The UPS Foundation
Founded in 1951 and based in Atlanta, Ga., The UPS Foundation's major areas of focus include community safety, non-profit effectiveness, economic and global literacy, environmental sustainability and diversity. The UPS Foundation pursues these initiatives by identifying specific projects where its support can help produce a measurable social impact. In 2007, The UPS Foundation donated more than $46 million to charitable organizations worldwide. Visit community.ups.com for more information about UPS's community involvement.

For additional information on the No Idling Campaign, visit www.earthday.net/noidling.

The Freight Transportation Services Index (TSI) fell 2.3 percent in December from its November level, falling for the second consecutive month, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today.

The December decline, the fourth monthly decrease in five months, dropped the freight index to a loss of 3.0 percent for 2008. The index was up 2.7 percent for the first seven months of the year but declined 5.5 percent in the final five months, the largest five-month decline since the period ending April 2000 .

The 2008 decline of 3.0 percent was the third consecutive annual decline and the largest since 2000.

At 105.1 in December, the freight TSI is at its lowest level since September 2003 when it was 104.4 and is down 7.1 percent from its historic peak of 113.1 reached in November 2005. For additional historical data, go to http://www.bts.gov/xml/tsi/src/index.xml.

The freight TSI measures the month-to-month changes in the output of services provided by the for-hire freight transportation industries. The index consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

The 2.3 percent decline from November to December dropped the freight index to its lowest year-end level since 2002 .

As a result of the 2.3 percent decline in December, the freight index dropped 2.7 percent in the five years from December 2003, the first such five-year decrease since January 1990, the starting date of the index. The index is still up 5.3 percent in 10 years .

The TSI is a seasonally adjusted index that measures changes from the monthly average of the base year of 2000. It includes historic data from 1990 to the present. Release of the January index is scheduled for March 11.

BTS has issued a technical report explaining the TSI. BTS Technical Report: Transportation Services Index and the Economy is available for download at https://www.bts.gov/pdc/index.xml in the BTS bookstore.

Transportation Services Index for Passengers

The TSI for passengers fell 0.9 percent in December from its November level. The Passenger TSI December 2008 level of 113.0 was 3.6 percent lower than the December 2007 level, the first annual decrease since 2001. The 3.6 percent annual decline dropped the passenger index to its lowest year-end level since 2005. Despite the decline for the year, the passenger index is up 12.5 percent in five years and 20.8 percent in 10 years.

The passenger TSI measures the month-to-month changes in the output of services provided by the for-hire passenger transportation industries. The seasonally adjusted index consists of data from air, local transit and intercity rail.

Combined Freight and Passenger Index

The combined freight and passenger TSI fell 1.9 percent in December from its November level. The combined TSI December 2008 level of 106.7 was 3.1 percent lower than the December 2007 level and marked the first annual decrease since 2006. This annual decline dropped the combined index to its lowest year-end level since 2003. However, the combined index is up 0.9 percent in five years and 9.1 percent in 10 years.

The combined TSI merges the freight and passenger indexes into a single index.

4th Quarter Changes

On a quarterly basis, the Freight TSI fell 2.6 percent in the fourth quarter, the largest quarterly decline since 4.8 percent decrease in the first quarter of 2000. However, the 2.6 percent fourth quarter decline following a 1.6 percent third-quarter drop resulted in the largest decline of any two consecutive quarters in the last 10 years. The Passenger TSI fell 1.7 percent in the fourth quarter following a 2.8 percent third-quarter decline that was the largest in the last five years. The Combined TSI fell 2.4 percent in the fourth quarter, falling for the second consecutive quarter.

More on TSI

NOTE: TSI numbers for August (Freight, Passenger and Combined) were revised because of revisions in the output data of the component transportation services. The August Freight TSI is 108.7, revised from the 110.8 reported in last month’s release (December). The August Passenger TSI is unchanged at 116.8. The August Combined TSI is 110.3, revised from 111.9. The TSI for September, October, November and December are preliminary.

TSI revision policy: TSI is updated monthly with the latest four months’ index numbers considered preliminary. Each month BTS releases the latest preliminary TSI, and replaces the oldest preliminary TSI with a revised TSI. More information about the monthly revision policy, the comprehensive revision conducted in July 2007 and the TSI index is available at http://www.bts.gov/xml/tsi/src/index.xml

Brief Explanation of the TSI

The Transportation Services Index (TSI) is a measure of the month-to-month changes in the output of services provided by the for-hire transportation industries. 

The TSI tells us how the output of transportation services has increased or decreased from month to month. The index can be examined together with other economic indicators to produce a better understanding of the current and future course of the economy.   The movement of the index over time can be compared with other economic measures to understand the relationship of changes in transportation output to changes in Gross Domestic Product (GDP).

The freight transportation index consists of:

For-hire trucking,
Railroad freight services (including rail based intermodal shipments such as containers on flat cars),
Inland waterways transportation,
Pipeline transportation (including principally petroleum and petroleum products and natural gas), and
Air freight.

The index does not include international or coastal waterborne movements, private trucking, courier services, or the US Postal Service.

The passenger transportation index consists of:

Local transit,
Intercity passenger rail, and
Passenger air transportation.

The index does not include intercity bus, sight seeing services, ferry services, taxi service, private automobile usage, or bicycling and other non-motorized transportation. 

  • Express-1 Reports Strong Q4 Results: Revenue Increases 95%, Operating Income Rises 84%

Express-1 Expedited Solutions, Inc. (AMEX:XPO) today reported its earnings for the fourth quarter, ended December 31, 2008.

Express-1 Expedited Solutions, through its three operating companies (Express-1, Concert Group Logistics and Bounce Logistics), provides the following premium transportation services: same-day delivery, time–sensitive shipping and premium freight brokerage throughout North America, as well as domestic and international freight forwarding.

Express-1 Expedited Solutions reported a 95% increase in revenue from continuing operations during the fourth quarter of 2008 to $25.0 million, compared to $12.8 million for the same period in the prior year. The acquisition of Concert Group Logistics, which had a transaction date of January 1, 2008, contributed $11.8 million to revenues for the period. For the fourth quarter, the Company’s Express-1 operations experienced a decline in revenues of $2.1 million or 16.7% over the same three-month period during 2007. Bounce Logistics continued to show traction and contributed $2.8 million to the overall increase in revenues.

During the same period, operating income from continuing operations increased by 84% to $1,044,000 versus $569,000 during the same period of 2007. Income from continuing operations improved 39% to $514,000 or $0.02 per fully diluted share for the fourth quarter of 2008 compared to $369,000 or $0.01 per diluted share for the same period in 2007.

During the fourth quarter of 2008, the Company discontinued its Express-1 Dedicated Operations, in anticipation of a cessation of this business activity during the first quarter of 2009. The Company’s management does not anticipate the incurrence of material charges related to this shutdown activity. Income from discontinued operations was $73,000, net of tax during the fourth quarter of 2008, versus income of $88,000, net of tax on these same operations during the fourth quarter of 2007.

“Throughout 2008, we have shared with our investors the significant impact the Company has experienced from our Concert Group Logistics and Bounce Logistics operations. Each of these businesses is profitable and has contributed to the overall business mix within our platform. In periods of weakness within the various freight economies, it is important to have this diversity within our Company. With the widely publicized downturn in the domestic and international economies, the strength of our non-asset based operating model came through. While we’re never totally pleased with our results, we are proud that we can maintain growth and profitability in the face of such an extremely weak freight market,” stated Michael Welch, the Company’s Chief Executive Officer.

Welch added, “I am pleased with the results we achieved from our two newer business units, Concert Group Logistics and Bounce Logistics. Each of these operations performed well in our weak economy. We’re cautiously optimistic that each of these units will continue to grow throughout 2009, as our team develops new business and business relationships. Considering the overall weaknesses within the domestic expedite market, we are also pleased with the operating results from our Express-1 business unit during the quarter. We’re focused on growth and business development initiatives. We completed some of the groundwork during the fourth quarter for what we anticipate will be an increase in business consolidation activities throughout 2009. During just the first few weeks of 2009, we have already completed one small acquisition of an important piece of expedite business volume. Our non-asset based business model is sound and we believe the financial strength of our Company can allow us to expand, even in this weakened economy.”

Chief Financial Officer Mark Patterson said, “Once again, our Company continued to demonstrate significant operating leverage during the fourth quarter. The rate of growth within our Selling, General and Administrative (SG&A) expenses was approximately one fourth the rate of growth of our revenues. The result of this leverage is that we have been able to continuously increase our operating income from continuing operations, even in periods of rate compression and weakness within the overall transportation market. During the fourth quarter of 2008, we took some significant steps aimed at controlling SG&A costs. These included headcount reductions; reductions in executive and managerial bonus awards; limitations on travel and entertainment; and limitations on hiring and wage increases. Our entire organization is focused upon efforts that will enhance and support our profitability, even in the face of the current recession. We are very proud of how our entire team has responded thus far.”

Outlook

“Looking towards 2009, we continue to be focused on business development efforts and maintaining an acceptable level of profitability, until the economic climate improves. Jeff Curry at Express-1, Gerry Post at Concert Group Logistics and Tim Hindes at Bounce Logistics each lead a team of professionals that are committed to preserving the positive momentum we’ve developed over the past three and a half years,” Welch said. “Potential acquisitions, new business development and stringent cost controls are critical to achieving the results we desire in 2009. Our non-asset based business model has proven itself over many years and in all types of economic climates. By remaining focused on our goals, we should be able to weather the current economic recession better than many of our peers within the transportation community.”

Conference Call/Webcast Information

Management will conduct a conference call Wednesday February 11, 2009 at 9:00 a.m. Eastern to discuss the Company’s fourth quarter financial results. Those interested in accessing a live or archived Webcast of the call should visit the Company’s Website at www.express-1.com. A playback will be available until midnight on February 18, 2009. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 311564.

About Express-1 Expedited Solutions, Inc.

Express-1 Expedited Solutions, Inc. is a non-asset based services organization focused on premium transportation through its business segments, Express-1, Inc. (Buchanan, Michigan), Concert Group Logistics, Inc. (Downers Grove, Illinois), and Bounce Logistics, Inc. (South Bend, Indiana). These segments are focused on premium services that include: same-day, time–sensitive and dedicated transportation as well as domestic and international freight forwarding. Serving more than 2,000 customers, the Company’s premium transportation offerings are provided through one of four operations centers; Buchanan, Michigan; Rochester Hills, Michigan; South Bend, Indiana and Downers Grove, Illinois. The Company services customers throughout the lower 48 states, portions of Canada and Mexico and internationally through its Concert Group Logistics network. The Company’s operating model can be described as non-asset or asset light, with independent contractors fulfilling the trucking services for most of its shipments, and independently owned stations managing the services of its freight-forwarding network. Express-1 Expedited Solutions, Inc. is publicly traded on the American Stock Exchange under the symbol XPO. For detailed financial information and charts, please visit www.express-1.com.

Forward-Looking Statements

This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs, as well as assumptions made by and information currently available to management. These forward-looking statements, which may include statements regarding our future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses, future operating margins and other future or expected performance are subject to risks. These risks include: that our recent reorganization fails to result in projected operating efficiencies; the acquisition of businesses or the launch of new lines of business, which could increase operating expenses and dilute operating margins; increased competition, which could lead to negative pressure on our pricing and the need for increased marketing; the inability to maintain, establish or renew relationships with customers, whether due to competition or other factors; the inability to comply with regulatory requirements governing our business operations; and to the general risks associated with our businesses.

In addition to the risks and uncertainties discussed above, you can find additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent our judgment as of the date of this release and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in the filing may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. 


Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced quarterly total revenues and operating income of $1,307,389,000 and $119,205,000 as compared with $1,446,582,000 and $107,616,000 for the same quarter of 2007, a decrease of 10% and an increase of 11%, respectively. Net earnings were $77,728,000 for the fourth quarter of 2008, compared with $70,057,000 for the same quarter of 2007, also an increase of 11%. Net revenues for the fourth quarter of 2008 increased 6% to $402,481,000 as compared with $379,441,000 reported for the fourth quarter of 2007. Diluted net earnings per share for the fourth quarter were $.36 as compared with $.32 for the same quarter in 2007, an increase of 13%. The Company also reported that same store net revenues and operating income increased 6% and 11%, respectively, for the fourth quarter of 2008 when compared with 2007.

For the year ended December 31, 2008, total revenues and operating income were $5,633,878,000 and $473,136,000 compared with $5,235,171,000 and $423,400,000 for the same period in 2007, increases of 8% and 12% respectively. Net earnings rose to $301,014,000 from $269,154,000 in 2007, an increase of 12%. Net revenues for the year increased to $1,603,261,000 from $1,452,961,000 for 2007, up 10%. Diluted net earnings per share for the year 2008 were $1.37 as compared with $1.21 for the same period of 2007, a 13% increase. Same store net revenues and operating income increased 10% and 12%, respectively, for the year ended December 31, 2008, when compared with the same period of 2007.

“Given the incessant tales of woe emanating from Wall Street these days, we hope the consistency and stability projected by these results will be reassuring to our employees, to our customers and to our shareholders,” said Peter J. Rose, Chairman and Chief Executive Officer. “The efforts to make this fourth quarter a success started back in the 2008 first quarter, when we banned the internal use of the “R” word as an excuse for poor performance. There was no magic formula. We simply executed. We increased productivity through on-going process improvement initiatives; we reduced our exposure where we struggled to make money; we cut back on discretionary overhead expenses, like travel and entertainment; and we were increasingly selective with our service provider allocations. This resulted in expanded net revenue yields and higher operating margins, all while offering market-competitive rates and uncompromising service to our customers. We also expanded market share through aggressively focusing on new products, like Sea-Air, new customers and new market vertical opportunities," Rose commented.

“Looking forward to 2009, we definitely understand that we have our work cut out for us. That said, we also have a lot going for us: a strong balance sheet with no debt and nearly three-quarters of a billion dollars in cash; a successful, proven business model that has worked in slow times as well as in boom times; and most important of all, the best trained and best motivated employees in the business - all of which are reinforced by our performance-based culture. Unlike the banking industry, however, our people understand that without real cash profits, there can be no real cash bonuses. Our incentive based bonus system, tied to a strictly GAAP definition of cumulative operating income, keeps our people focused and grounded. They also understand that the most effective way of perpetuating profits is to keep our existing customers satisfied while aggressively attracting new business. With this combination of factors working for us, we’re confident that we’ll find ways to turn challenges into opportunities. We always have,” Rose concluded.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 181 full service offices, 68 satellite locations and 4 international service centers located on six continents linked into a seamless worldwide network through an integrated information management system. Services include air and ocean freight forwarding, vendor consolidation, customs clearance, marine insurance, distribution and other value added international logistics services.


Expeditors International of Washington, Inc.
Financial Highlights
Three months and Year ended
December 31, 2008 and 2007
Unaudited
(in 000's of US dollars except share data)

 
 
 
 


Three months ended December 31,


Year ended December 31,



2008

 

2007


% Inc. (Dec.)

2008

 

2007


% Inc.

Revenues
$ 1,307,389
$ 1,446,582
-10 %
$ 5,633,878
$ 5,235,171
8 %
Net revenues
$ 402,481
$ 379,441
6 %
$ 1,603,261
$ 1,452,961
10 %
Operating income
$ 119,205
$ 107,616
11 %
$ 473,136
$ 423,400
12 %
Net earnings
$ 77,728
$ 70,057
11 %
$ 301,014
$ 269,154
12 %
Diluted earnings per share
$ .36
$ .32
13 %
$ 1.37
$ 1.21
13 %
Basic earnings per share
$ .37
$ .33
12 %
$ 1.41
$ 1.26
12 %
Diluted weighted average shares outstanding

216,925,452


221,192,441




219,170,003


221,799,868



Basic weighted average shares outstanding

211,952,384


213,095,428




212,755,946


213,314,761



There were no office openings in the fourth quarter of 2008.

Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual and Quarterly Reports filed with the Securities and Exchange Commission.

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