US based forwarder EGL, Inc. has reported that its net revenues increased by 7% to $1.0 billion compared with $948 million in 2005. EGL also reported net income of $56.3 million compared with $58.2 million. Operating income for full year 2006 was $96.5 million, an increase of 1% from $95.4 million earned in 2005.

EGL Chief Executive Officer Jim Crane commented, "Our financial performance in the fourth quarter was disappointing, especially given the strong momentum we had earlier in 2006. We generated record revenues in the quarter in spite of industry-wide softness and the decline in revenue per shipment in our domestic freight forwarding operations. We are taking the necessary steps to address the financial performance of our residential delivery business, align our cost structure and continue to focus on delivering superior service to our customers. Although we generated record revenues during 2006, we will remain focused on improving profitability on each shipment and controlling our operating expenses throughout the organization."

Gross revenues of $861.3 million in the fourth quarter of 2006 increased 3% from the same quarter last year, with increases in airfreight forwarding of 1%, ocean freight forwarding of 1%, and customs brokerage, logistics and other of 11%. Gross revenues outside of North America accounted for 57% of fourth quarter activity and increased 4% over the same quarter last year due to higher volumes in Asia Pacific and Latin America.

Airfreight net revenues of $137.8 million decreased 9% from the same quarter last year. The fourth quarter 2006 results were impacted by a $5.4 million decline in domestic airfreight net revenues to $48.7 million compared with $54.1 million in 2005. The decrease was due to a decline in net revenue per shipment at the Company's domestic freight forwarding division due to a greater portion of deferred, as opposed to expedited, ground and residential shipments during the traditional peak shipping season. For the quarter, total domestic shipments increased approximately eight percent over the fourth quarter of 2005. The fourth quarter results were also impacted by lower than expected international airfreight volumes.