ABX Air, Inc.

[2LT]

http://moneycentral.msn.com/scripts/webquote.dll?iPage=lqd&Symbol=ABXA


What's up with the sell-off?

Anybody w/ the inside story? Looks like more than a 'minor' scare...

 

[flyinboxes]

That does not sound good.

 

[flyinboxes]

In their statement to shareholders it says they will be parking some planes. It does not say how many but it will effect them financially. Thus the sell off of stock.

 

[2LT]

Form 10-Q

Flyinboxes,
Yep, you're right. It took a little digging -- looks as if they released this COB Friday:



DHL INTEGRATION PLANS


As a result of their merger, DHL and Airborne are in the process of integratingtheir combined product offerings, sales, marketing, administrative and operatingresources. After August 15, 2004, Airborne may terminate specific ACMI aircraft,add to, delete or modify the air routes we operate under the ACMI agreement andadd to, delete or modify services we provide under the Hub Services agreement.DHL has informed ABX that, in an effort to eliminate duplicate costs, it isdeveloping plans to better integrate its U.S. operations (both air and ground).We anticipate that plans will be finalized later this year for implementationduring late 2005 and early 2006 that will call for a reduction in the number ofaircraft provided to Airborne by ABX under the ACMI agreement. At this time, itis uncertain to us how many ABX aircraft will eventually be removed from serviceand the timing of the reductions. Additionally, DHL is developing integrationplans that would consolidate the operations of the Wilmington hub, which weoperate, and the Northern Kentucky hub, which it operates. While the financialimpact of any changes in ACMI or hub services that we provide will vary with theintegration plans ultimately adopted by DHL, we currently expect that, whenimplemented, the integration plans will significantly affect our operations andmay materially reduce our net earnings.


Pursuant to the terms of the ACMI agreement, we have certain rights to sell toAirborne the aircraft that are removed from service. We anticipate that theapproximate number of aircraft to be removed from service and a final decisionregarding the consolidation of the hub operations will be disclosed by DHL bythe end 2004.

 

[GoABX]

From the CEO last night:

The decision on which hub DHL will use will be made in the next 60-90 days.

ABX WILL park aircraft. We don't know how many or when. The feeling is DHL will tell us the numbers in AUG04 for implementation in late 05, early 06. Number of furloughs is unknown.

 

[goastar]

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Reuters
ABX could reach $9/share on DHL contract-Barron's
Sunday May 23, 3:44 pm ET


NEW YORK, May 23 (Reuters) - Shares of ABX Air Inc. (OTC BB:ABXA.OB - News) could rise as high as $9 per share in 12 to 18 months if the company's arrangement with DHL (DHL.UL) remains intact, financial weekly Barron's said on Sunday.
DHL made up 98 percent of of ABX's first-quarter sales and 78 percent of its profit, Barron's said.

ABX shares closed at $3.79 in over-the-counter trading on Friday.