Frozen Food Express Industries on Thursday, April 2, announced that it anticipates first-quarter revenues and earnings to be below those reported during the comparable period a year ago. The company says it has implemented a comprehensive cost-reduction initiative to improve asset utility and to reduce many of its nonvariable costs.
FFE’s nondriver headcount has been reduced by about 150 positions since Jan. 1, including about 110 positions that have been eliminated within the last two weeks, says Mit Stubbs, president and chief executive officer of the Dallas-based company. FFE also has suspended its 401(k) matching contributions and is consolidating duplicative efforts within its operating units, he says.
“FFE’s truckload and less-than-truckload volumes and earnings continue to be impacted by the severe economic recession,” Stubbs says. “The company is experiencing pricing pressure as excess capacity continues within the transportation industry. Despite the economic challenges, the company is focused on protecting its market share while providing the highest service levels to its customers.”
The company says it continues to be in a strong financial position, with no debt outstanding under its revolving credit facility.