Consolidated Freightways CEO Resigns

Consolidated Freightways Corp., the third-largest U.S. long-distance trucking company, said Wednesday that Chief Executive W. Rodger Curry resigned as it had a fourth-quarter loss because of costs to improve service.

Curry, 61, stepped down after 31 years with the Menlo Park, Calif.-based company. The board appointed director G. Robert Evans, 68, acting chief executive and hired a search firm to find a permanent replacement.

The company had a loss of $11.3 million, or 52 cents a share, contrasted with a profit of $2.6 million, or 11 cents, a year earlier. The loss exceeded the 45-cent average loss estimate of three analysts polled by First Call/Thomson Financial and the 46-cent loss the company forecast this month. Revenue rose 6.3% to $605.5 million.

The company blamed the loss on higher-than-expected costs to improve service and convert to a new computer system, as well as increases in claims and vehicle accidents. The company said it reorganized its sales and operations teams to attract higher-profit customers.

Consolidated shares slid 19 cents to close at $7 on Nasdaq. Its shares have declined 58% in the last 12 months.

For the full year, net income fell 90% to $2.7 million, or 12 cents a share, from $26.3 million, or $1.12, a year earlier. Revenue rose 6.3% to $2.4 billion.