Quality Distribution Cuts 60 Jobs
Tank truck carrier Quality Distribution said it has eliminated about 60 positions —17% of its workforce — primarily at its Tampa, Fla., headquarters.
The company said it expects a reduction in payroll costs of about $5 million annually and that it will take a pre-tax charge for severance-related costs of $1.5 million in the second quarter.
“This was a very difficult decision, but one that was necessary in light of our recent financial performance,” Chief Executive Officer Gary Enzor said in a statement. “We made these reductions while giving full consideration to ensuring that we maintain our commitment to the highest standards for customer service and compliance.”
Quality said that its first-quarter revenue excluding fuel surcharges was about $177 million, an 11% increase over last year.
Excluding the impact of an acquisition that closed in December, revenue for the quarter was flat compared with last year, as the carrier “continued to be impacted by the softness in the housing markets as well as 10% fewer work days in March this year as compared to last March,” it said in a statement.
Quality, which took an $11 million loss in the fourth quarter, is ranked No. 35 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
