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Caliber System, Inc.
3925 Embassy Parkway
Investor Contact: Investor Relations P.O. Box 5459
(330) 665-8814 Akron, OH 44334-0459
(330) 665-5659
http//www.calibersys.com
Media Contact: Dave Edmonds
(330) 665-8847
FOR IMMEDIATE RELEASE
JUNE 24, 1997
CALIBER SYSTEM EXPECTS IMPROVED EARNINGS FOR SECOND QUARTER
ANTICIPATES DOUBLE-DIGIT GROWTH TO CONTINUE AT RPS IN 1997 AND
MODEST SECOND QUARTER PROFIT FROM ON-GOING VIKING OPERATIONS
AKRON, OHIO - Caliber System, Inc. (NYSE: CBB) said today that the
Company expects to post significantly increased year-over-year operating
profits for the second quarter of 1997 which ended on June 21. The announcement
was made to a group of industry analysts during a conference scheduled for
today at the Pittsburgh, PA headquarter of RPS, Caliber's small-package
carrier.
Second quarter revenue and profits at RPS are expected to increase
approximately 12% over 1996 figures, as on-time service continues to run at
record levels. "We have experienced double-digit growth at RPS now for seven
months, and believe this trend should continue through 1997," said Daniel J.
Sullivan, Caliber's Chairman, President and CEO.
Sullivan added, "Viking expects to report a profitable second quarter,
excluding approximately $16 million of transition costs attributable to
operating losses at the former Central Freight Lines and other non-recurring
costs related to the Viking restructuring announced on March 27, 1997."
Louis J. Valerio, Senior Vice President-Finance and Chief Financial
Officer, stated: "The Viking restructuring is having a positive impact on
Caliber's balance sheet. Early indications are that the $85 million
restructuring charge included in first quarter results will be less than
anticipated. Further, proceeds from the sale of the former Central Freight
Lines, as well as revenue equipment and surplus terminals from the former Coles
Express and Spartan Express, are expected to reduce Caliber's debt by
approximately $70 million from its current level of $315 million." Valerio also
commented that Caliber expects capital spending to be under $135 million for
1997.
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CALIBER SYSTEM, INC.
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At the analysts meeting, RPS presented an overview of the technology
that sets the company apart in the small-package shipping industry. The
presentation reviewed the RPS delivery process, which includes the industry's
only fully automated hub network, and demonstrated solution-based products and
services, such as MULTICODE(SM), the firm's new two-dimensional bar code
system. Visiting analysts also took part in hands-on demonstrations of RPS
Internet services, such as on-line tracing and service maps, and the RPS
MULTISHIP(SM) parcel processing equipment.
Caliber System is a leading provider of value-added transportation,
logistics and related information services. Its operating companies include
RPS, a business-to-business small-package carrier; Viking Freight, a supplier
of regional freight service in the West; Caliber Logistics,a contract logistics
provider; Roberts Express, a critical-shipment carrier; and Caliber Technology,
a producer of systemwide information services. By combining its operating
units' products and services, Caliber offers integrated, customized solutions
that meet customer demand for more comprehensive transportation and logistics
programs.
This release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties are detailed from time to time in
reports filed by the Company with the Securities and Exchange Commission,
including Forms 8-K, 10-Q and 10-K.
Caliber expects to release its second quarter earnings report during
the week of July 14, 1997.
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