Overnite Posts Decline in First Quarter Results

RICHMOND, Va. — Overnite Transportation Co. reported slightly lower revenue and profits in the first quarter of 1999 compared to the same period in 1998. Freight volume, as measured by tonnage, was flat.

"We suffered two hits early in the quarter," said Pat Hanley Sr., senior vice president. "First, we are comparing volumes that were skewed last year by the diversion of long-haul freight to Overnite from unionized national carriers under siege from a threatened Teamsters strike.

"Then, this year, we were hampered by heavy snows in January and higher costs as we introduced our Advantage Overnite program in the Northeast."

Under the Advantage Overnite program, the company expanded its coverage to all points in 27 states.

Despite the decline in business, Overnite said profits were the second-highest in the last four years and continues a profitable pattern since the company lost $11.5 million before goodwill in the first quarter of 1996. Goodwill refers to the portion of the $1.2 billion price paid by Union Pacific Corp. in 1986 to acquire Overnite that was above the Overnite’s book value.

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