Express-1 reports lower 2Q net income from continuing ops

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Express-1 Expedited Solutions Inc. on Monday, Aug. 15, announced that total revenue from continuing operations for the second quarter was $44.1 million, a 9.3 percent increase from the same period in 2010. Net income from continuing operations was $914,000 compared with $1.504 million.

“While our revenue growth in the quarter was solid, we experienced margin pressure within our Express-1 unit, including a greater reliance on high-volume lower-rate customers, and the strategic expansion of our cross-border business,” said Mike Welch, chief executive officer of the St. Joseph, Mich.-based business. “In addition, we drove 43 percent revenue growth in Bounce Logistics, a business model that generates a lower margin.”

Welch said domestic demand began to strengthen late in the quarter. “In addition, we are continuing to see significant growth in our business with Mexico, where Express-1’s expertise in border logistics is a competitive advantage,” he said. “We anticipate that our overall operating environment will continue to become more favorable through the balance of the year as Japan’s export production recovers from the tsunami and seasonal retail activity develops.”

Welch described the proposed investment in Express-1 led by Jacobs Private Equity as “a tremendous opportunity for the company to carve out a major position under the new banner of XPO Logistics in three areas where we already excel, expedited transportation solutions, domestic and international freight forwarding, and premium truckload brokerage. We look forward to the stockholder vote on September 1.”