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CALIFORNIA | TRANSPORTATION | THE STATE

Caliber to Restructure Unit, Cut Jobs

March 28, 1997|Bloomberg News

Caliber System Inc. said it will restructure its San Jose-based Viking Freight Inc. unit because of its steep losses, which will result in the elimination of 4,000 jobs and a $150-million charge against previously reported 1996 earnings. Caliber will sell its former Central Freight Lines unit and close its former Coles Express and Spartan Express units. Those three divisions, which all provide regional trucking services, were merged into Viking Freight in January 1996. Akron, Ohio-based Caliber will take unspecified additional charges for the restructuring during the first quarter of 1997, a spokeswoman for the company said. The charge will change Caliber's 1996 net income of $9.9 million, or 25 cents a share, to a loss of $165.1 million, or $4.18 a share, the company said. The closing of Coles and Spartan will result in the elimination 83 terminals, it said.

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