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Air Express International (AEI) Reports First Quarter 1999 Results

DARIEN, CT USA (May 7, 1999) -- Air Express International Corporation (Nasdaq-NMS: AEIC) today announced results for the first quarter ended March 31, 1999.

AEI reported net income for the first quarter of $13,624,000, or $.40 per diluted share, which included a gain on the sale of marketable securities of $4,908,000, or $.14 per diluted share. The gain was previously announced by the Company on February 26, 1999. Excluding the above-mentioned gain, first quarter net income was $8,716,000, or $.26 per diluted share, compared to first quarter 1998 net income of $9,730,000, or $.28 per diluted share, declines of 10 percent and seven percent, respectively.

Gross revenues for the first quarter were $354,684,000, a decline of five percent from the 1998 first quarter gross revenues of $372,376,000. The lower gross revenues were attributable entirely to airfreight revenues, which declined eight percent to $268,276,000 on generally weaker demand for air exports, particularly during January and February. Ocean freight revenues increased 14 percent to $49,252,000 on improved volumes in Asia and the United States. Customs brokerage and other gross revenues were approximately the same as the first quarter of last year.

Net revenues increased two percent to $120,378,000 in the first quarter due to increases in airfreight and ocean freight, which improved two percent and 24 percent, respectively, over the first quarter of a year ago. The increase in airfreight net revenues is attributable to both improvements in the mix and routing of cargo and in the cost of transportation. The increase in ocean freight net revenues resulted from higher levels of shipping activity and lower ocean freight costs in selected markets. Customs brokerage and other net revenues decreased six percent to $28,983,000. Net revenues from customs brokerage alone were about equal to the first quarter of last year, while warehousing and distribution declined largely due to reduced activity and selling rates in several markets.

The operating profit of European operations suffered significant declines in the quarter, which were partially offset by improved results in the United States and Asia. This resulted in total operating profit for the first quarter decreasing 10 percent to $11,904,000.

Guenter Rohrmann, AEI's President and Chief Executive Officer, commented, "We experienced significant softness in our airfreight business during the first two months of the quarter. However, we are pleased to report that volumes increased in March in most countries, including a robust demand in the Asian markets during the last two weeks of the quarter. We anticipate continued improvement in our airfreight business as the year progresses."

Headquartered in Darien, CT, AEI is a world leader in integrated logistics services, delivering multi-modal transportation, warehousing and distribution, customs brokerage and information management solutions across a network of 705 locations in more than 135 countries.