EGL, Inc. Indicates Soft Shipment Activity in March

Apr 10, 2001, 01:00 ET from EGL Eagle Global Logistics

    HOUSTON, April 10 /PRNewswire/ --
 EGL Eagle Global Logistics (Nasdaq: EAGL) today announced that, due to
 challenging economic conditions, EGL's U.S. shipment activity in March was
 slightly below last year's levels and did not reflect the acceleration
 normally seen at the end of the quarter.  Traditionally, March has reflected a
 sharp increase in activity as compared to January or February, by as much as
 20% in the last two years.
     EGL also indicated that some customers began converting shipments from air
 to ground during the quarter.  Priority shipments in North America declined by
 7% in the first quarter from a year ago, while deferred shipments increased
 7%.  March reflected a 2% decline in North American priority shipments
 compared to January levels, while the deferred shipments grew 1%.
     "We are seeing the impact of the weak economy on our business," said
 Elijio Serrano, EGL chief financial officer.  "Our first quarter results were
 negatively impacted by the lack of volume growth, and we expect first quarter
 earnings to be significantly less than is currently anticipated by analyst
 consensus estimates.  As a result of the slowdown and continued economic
 uncertainty, it is unlikely that we will be able to achieve our previous 2001
 earnings, revenue and other forecasts.  The uncertainty concerning the
 duration of the economic slowdown makes it extremely difficult to forecast
 future financial results."
     "We did not see sufficient new bid activity or market share gains in the
 first quarter to offset the effects of the slowing economy," said James R.
 Crane, EGL chairman and CEO.  "We remain confident that we will continue to
 add business from new and existing customers.  However, it is now evident that
 we will not attain the growth levels we had anticipated for the first half of
 the year because of a steeper than expected drop in activity from our existing
 client base."
     Crane continued, "We have continued confidence in our long-term business
 strategies and remain pleased with the progress of our merger integration.  We
 will continue to aggressively reduce our cost structure to minimize the impact
 of the weak economy, and are well-positioned for solid growth when economic
 conditions improve."
     Houston-based EGL, Inc. operates under the name EGL Eagle Global
 Logistics.  EGL is a leading global transportation, supply chain management
 and information services company dedicated to providing superior flexibility
 and fewer shipping restrictions on a price competitive basis.  Its network of
 almost 400 terminals in 100 countries features advanced information systems
 designed to maximize cargo management efficiency and customer satisfaction.
 With 2000 revenues exceeding $1.8 billion, EGL's services include air and
 ocean freight forwarding, customs brokerage, local pickup and delivery
 service, materials management, warehousing, trade facilitation and
 procurement, and integrated logistics and supply chain management services.
 EGL's shares are traded on the NASDAQ National Market under the symbol "EAGL".
 
     FORWARD LOOKING STATEMENTS
     The statements in this press release regarding reductions in EGL's cost
 structure and the anticipated effects thereof, expectations regarding first
 quarter earnings, the likelihood of achieving anticipated growth levels for
 the first half of the year, EGL's ability to achieve its previous 2001
 earnings, revenue or other forecasts, future expectations and outlook, future
 revenue and earnings growth, future operating expenses, improvements in
 economic conditions, EGL's ability to add business from existing and new
 customers and the anticipated effects thereof, and any other statements, which
 are not historical facts, are forward looking statements.  Such statements
 involve risks and uncertainties, including, but not limited to, competition,
 costs and difficulties relating to the Circle merger and the integration of
 Circle and uncertainties in achieving anticipated synergies, savings and
 benefits and in avoiding costs, general economic conditions, ability to manage
 and continue growth, results and effects of litigation, results of future
 operations and financial condition, risks of international operations,
 integration of systems, fuel costs, effects of regulations, and other factors
 detailed in the company's most recent Form 10-K and other filings with the
 Securities and Exchange Commission.  Should one or more of these risks or
 uncertainties materialize, or should underlying assumptions prove incorrect,
 actual outcomes may vary materially from those indicated.
 
      For more information about Eagle:
      Contact Eagle Investor Relations via the Internet at hfedele@eaglegl.com
 or by telephone at 281/618-3467, Heather Fedele, Investor Relations Manager.
 
 

SOURCE EGL Eagle Global Logistics
    HOUSTON, April 10 /PRNewswire/ --
 EGL Eagle Global Logistics (Nasdaq: EAGL) today announced that, due to
 challenging economic conditions, EGL's U.S. shipment activity in March was
 slightly below last year's levels and did not reflect the acceleration
 normally seen at the end of the quarter.  Traditionally, March has reflected a
 sharp increase in activity as compared to January or February, by as much as
 20% in the last two years.
     EGL also indicated that some customers began converting shipments from air
 to ground during the quarter.  Priority shipments in North America declined by
 7% in the first quarter from a year ago, while deferred shipments increased
 7%.  March reflected a 2% decline in North American priority shipments
 compared to January levels, while the deferred shipments grew 1%.
     "We are seeing the impact of the weak economy on our business," said
 Elijio Serrano, EGL chief financial officer.  "Our first quarter results were
 negatively impacted by the lack of volume growth, and we expect first quarter
 earnings to be significantly less than is currently anticipated by analyst
 consensus estimates.  As a result of the slowdown and continued economic
 uncertainty, it is unlikely that we will be able to achieve our previous 2001
 earnings, revenue and other forecasts.  The uncertainty concerning the
 duration of the economic slowdown makes it extremely difficult to forecast
 future financial results."
     "We did not see sufficient new bid activity or market share gains in the
 first quarter to offset the effects of the slowing economy," said James R.
 Crane, EGL chairman and CEO.  "We remain confident that we will continue to
 add business from new and existing customers.  However, it is now evident that
 we will not attain the growth levels we had anticipated for the first half of
 the year because of a steeper than expected drop in activity from our existing
 client base."
     Crane continued, "We have continued confidence in our long-term business
 strategies and remain pleased with the progress of our merger integration.  We
 will continue to aggressively reduce our cost structure to minimize the impact
 of the weak economy, and are well-positioned for solid growth when economic
 conditions improve."
     Houston-based EGL, Inc. operates under the name EGL Eagle Global
 Logistics.  EGL is a leading global transportation, supply chain management
 and information services company dedicated to providing superior flexibility
 and fewer shipping restrictions on a price competitive basis.  Its network of
 almost 400 terminals in 100 countries features advanced information systems
 designed to maximize cargo management efficiency and customer satisfaction.
 With 2000 revenues exceeding $1.8 billion, EGL's services include air and
 ocean freight forwarding, customs brokerage, local pickup and delivery
 service, materials management, warehousing, trade facilitation and
 procurement, and integrated logistics and supply chain management services.
 EGL's shares are traded on the NASDAQ National Market under the symbol "EAGL".
 
     FORWARD LOOKING STATEMENTS
     The statements in this press release regarding reductions in EGL's cost
 structure and the anticipated effects thereof, expectations regarding first
 quarter earnings, the likelihood of achieving anticipated growth levels for
 the first half of the year, EGL's ability to achieve its previous 2001
 earnings, revenue or other forecasts, future expectations and outlook, future
 revenue and earnings growth, future operating expenses, improvements in
 economic conditions, EGL's ability to add business from existing and new
 customers and the anticipated effects thereof, and any other statements, which
 are not historical facts, are forward looking statements.  Such statements
 involve risks and uncertainties, including, but not limited to, competition,
 costs and difficulties relating to the Circle merger and the integration of
 Circle and uncertainties in achieving anticipated synergies, savings and
 benefits and in avoiding costs, general economic conditions, ability to manage
 and continue growth, results and effects of litigation, results of future
 operations and financial condition, risks of international operations,
 integration of systems, fuel costs, effects of regulations, and other factors
 detailed in the company's most recent Form 10-K and other filings with the
 Securities and Exchange Commission.  Should one or more of these risks or
 uncertainties materialize, or should underlying assumptions prove incorrect,
 actual outcomes may vary materially from those indicated.
 
      For more information about Eagle:
      Contact Eagle Investor Relations via the Internet at hfedele@eaglegl.com
 or by telephone at 281/618-3467, Heather Fedele, Investor Relations Manager.
 
 SOURCE  EGL Eagle Global Logistics