Truckload carrier Cannon Express said its financial losses increased both in the second quarter and for the first half of fiscal 2003, despite the efforts of the freight consulting firm running the company to stem those losses.
Springdale, AR-based Cannon said it lost $2.87 million on revenues of $16.4 million in its second fiscal quarter, compared to losses of $2.52 million on revenues of $19.77 million during the second quarter of fiscal 2002. For the first half of fiscal 2003, Cannon said it lost $6 million on revenues of $35.2 million, up from losses of $4.57 million on revenues of $41.5 million in fiscal 2002.
CFOex, a transportation-consulting firm hired by company owner Dean Cannon in August 2002, is currently running Cannon. CFOex is in the midst of reconfiguring Cannon by reconfiguring its freight network, increasing freight rates where it can, minimizing over-the-road maintenance repairs, eliminating excess and idle equipment, and reducing both fixed and variable costs.
CFOex said it began decreasing Cannon's fleet by approximately 204 tractors and 324 trailers during the second quarter. About 54 trucks and 174 trailers were sold in the second fiscal quarter to help pay down debt.
CFOex said it expects to sell a further 60 trucks and 150 trailers in the third quarter of fiscal 2003, also to help reduce Cannon's debt load. The firm said it has reduced maintenance costs at Cannon by 3 cents a miles and expects to save a further $2.8 million this year by adopting a new insurance policy.