Slightly more than a week after releasing its third quarter financial results, USF Corp. announced the resignation of its chairman, president and CEO Richard P. DiStasio. On November 2nd, the USF board said it had reached an agreement with DiStasio to “terminate the employment relationship between Mr. DiStasio and USF Corporation.”
On October 22nd, USF reported income from continuing operations of $12.1 million. This compares with $13.1 million income from continuing operations for the same period a year earlier. Earlier in the year, the company closed USF Red Star, its regional less-than-truckload operation (LTL), which served the Northeast U.S. The Red Star closure resulted in shutdown costs and operating losses of $7.8 million in the quarter.
For the nine months ended October 2nd, USF reported net income of $17.2 million, down from $23.8 million the prior year.
Third quarter revenue for the LTL segment was $484 million, vs. $486 million the previous year. Operating income was equal to the prior year’s $30.3 million.
LTL shipments dropped 7.4% in the quarter when compared with the prior year. Tonnage decreased 2.2%. However, revenue per shipment increased 5.6% (including fuel surcharges) and average weight per shipment also increased 5.6%.
USF Glen Moore, the company’s truckload operation, recorded slightly lower revenue of $33.6 million vs. $33.7 million in the third quarter of 2003. Profit was $0.8 million vs. $1.8 million a year earlier.
USF Logistics had flat revenues of $67.0 million, just below the $67.7 million for the 2003-quarter. Operating profit for the logistics group was also off from $2.9 million in the 2003 third quarter to $2.3 million this year.
Thomas E. Bergmann will serve as interim CEO while the company conducts a nationwide search for a new senior executive. Bergmann, formerly executive vice president, “has played a lead role in changing the business model and culture at USF as well as leading the charge on the five-year strategic plan,” said the USF board.