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EXHIBIT 4
NEWS RELEASE [CALIBER LOGO]
CALIBER SYSTEM, INC.
3680 WEST MARKET STREET
P.O. BOX 5459
AKRON, OH 44334-0459
(330) 605-5848
HTTP://WWW.CALIBERSYS.COM
FOR IMMEDIATE RELEASE
CONTACTS R.M. ADARNOV
CALIBER SYSTEM, INC.
(330) 665-8894
CALIBER SYSTEM ANNOUNCES DIVIDEND, SHAREHOLDER RIGHTS PLAN AND INFORMATION
REGARDING THIRD QUARTER FINANCIAL PERFORMANCE
AKRON, OHIO, AUGUST 15, 1996 - Daniel J. Sullivan, Chairman of the
Board, President and CEO of Caliber System, Inc. (NYSE: CBB), today announced
declaration of a dividend payment, adoption of a shareholder rights plan and
preliminary information regarding third quarter financial performance.
The Company's Board of Directors has authorized the payment of a
regular quarterly dividend of $.18 per share payable on November 1, 1996 to
shareholders of record on October 15, 1996.
The Board of Directors also has adopted a shareholder rights plan. Its
adoption is not in response to any takeover proposal. Under the plan, the
Board has declared a dividend of one right for each share of Company common
stock held of record as of the close of business on August 26, 1996. The rights
will not be exercisable, and no rights certificate will be distributed, until
ten calendar days following a public announcement that a person or group has
acquired 20% of the Company's common stock. Subject to certain exceptions, the
Company will generally be entitled to redeem the rights at $0.001 per right at
any time. A letter describing the details of the rights plan will be
distributed to the stockholders of the Company by a mailing in September. "We
firmly believe this plan will enable the Board of Directors to better protect
the investment of our shareholders," said Sullivan.
In July, we stated that operating losses for 1996 at Viking would
significantly exceed the company's earlier estimate and announced that the loss
for the second quarter ended June 15, 1996 was $31.2 million. As previously
indicated, costs for consolidating the Company's four regional carriers into
the "new" Viking will continue throughout 1996. Extensive operations and sales
plans have been implemented to manage the rapid growth and associated expenses
experienced at Viking. Although the third quarter does not end until September
7, 1996, our present expectation is that the operating losses experienced by
Viking in the second quarter will continue at approximately the same rate
through the present quarter. With this information, we presently anticipate
that Caliber System, Inc. will, at best, break even for the third quarter. The
company will release third quarter earnings the week of September 23.
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"Without question, it has been a difficult transition year for Viking.
However, we remain confident that our strategy is right - focused on attaining
long term objectives for our customers and shareholders alike. We continue to
move forward with the Viking consolidation. The merging of facilities,
equipment and operating systems are on track for completion in 1996 under the
leadership of Ron Pelzel, promoted to the Viking CEO position on July 3rd. We
will stay the course but continue to intensely evaluate our operations and
reduce costs as appropriate," Sullivan added.
Caliber System, Inc. is a leading, value-added provider of
transportation, logistics and related information services. its operating
units include RPS, a business-to-business small package carrier; Viking
Freight, a superregional freight carrier; Caliber Logistics, a supplier of
contract logistics services; Roberts Express, a critical-shipment carrier; and
Caliber Technology, a provider of computer-based solutions for customers.
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