Tiger Intl Posts Profit, PS Group Trims Loss
Undated (AP) _ Tiger International Inc. on Thursday posted a first-quarter profit of $4.8 million, or 15 cents per share, primarily because of lower fuel costs and union wage concessions granted late last year.
Separately, San Diego-based PS Group Inc., the parent of Pacific Southwest Airlines, said it trimmed its first-quarter deficit to $7.3 million from $9.9 million a year earlier.
It was the second consecutive quarterly profit for Los Angeles-based Tiger, parent of Flying Tiger Lines Inc., the world’s oldest and largest air-freight company. Previously, the company had been in the red for eight quarters, rolling up deficits of about $72 million.
In its first quarter of 1986, the company lost $34.2 million.
Revenue in the most recent period rose to $265.3 million from $263.2 million.
The most recent quarter, ended March 31, was the first to show the full effect of union wage concessions estimated to be worth about $60 million a year. Those concessions were granted last December after the company threatened to liquidate itself rather than absorb further losses.
All the turnaround was in the company’s Flying Tiger Line unit, which posted an operating profit in the most recent period of $13 million, compared a a loss of $27.9 million a year earlier.
Its trucking segment showed an operating profit of $465,000, down from $561,000 a year earlier.
In San Diego, the first-period loss by PS Group came despite a 10.4 percent increase in revenue to $234.6 million from $212.5 million.
The company showed an operating profit of $5.3 million, compared to an operating loss a year earlier of $4.2 million. But that profit was more than offset by non-operating expenses, including interest and losses from foreign currency transactions.
PS Group said no new talks had been scheduled with Teamsters Union officials to resolve a dispute that is threatening to kill a $400 million acquisition of the company by USAir Group Inc. of Arlington, Va. The companies have set a deadline of April 30 for the deal to be completed.