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AIRBORNE FREIGHT CORPORATION REPORTS THIRD QUARTER 1993 RESULTS

 SEATTLE, Oct. 25 /PRNewswire/ -- Airborne Freight Corp. (NYSE: ABF), which operates under the trade name Airborne Express, today reported net earnings available to common shareholders of $10,371,000 or 53 cents per share, 52 cents per share on a fully diluted basis, for the third quarter ended Sept. 30. This compares to net earnings of $1,370,000, or 7 cents per share for the same period last year.
 Total revenues for the 1993 third quarter were $434,223,000, up 17 percent from $371,648,000 reported for the 1992 third quarter. Domestic revenues were $378,276,000, an increase of 19.5 percent compared to revenues of $316,390,000 in 1992. International revenues of $55,947,000 were slightly ahead of the $55,258,000 recorded in the same period last year.
 Net earnings available to common shareholders before changes in accounting for the nine months ended Sept. 30, were $18,910,000, or 97 cents per share versus a net loss of $2,435,000 for the same period last year. Reflecting the net credit resulting from the changes in accounting which occurred in the first quarter of 1993, net earnings available to common shareholders for the nine months were $22,738,000, or $1.16 per share.
 Net earnings for the third quarter of 1993 reflect a charge of $933,000, or 5 cents per share due to additional income taxes related to the recently enacted tax legislation, which among other provisions increased the top corporate tax rate from 34 to 35-percent. The charge increases taxes accrued for earnings in the first six months of 1993, and adjusts the deferred tax liability at June 30, 1993.
 The total number of shipments for the third quarter was 41,535,000, up 23-percent from the 1992 third quarter. Domestic shipments climbed 23-percent to 40,643,000 versus 32,988,000 in 1992. International shipments increased 8-percent to 892,000, compared to 828,000 in the third quarter of 1992.
 "The operating results for the third quarter are obviously the best we have experienced in some time," said Airborne's Chief Financial Officer Roy Liljebeck. "Because of the economy and a severe price war with a competitor from mid-1991 to mid-1992, it has been two years since an operating margin equal to the third quarter of this year's six percent has been realized.
 "A number of factors were all on a positive trend in the third quarter. Domestic shipment and revenue growth were strong, and the overnight shipment growth rate was a very favorable 15 percent. Yields as measured on a per shipment basis were stable, and in fact, were up slightly from this year's second quarter," continued Liljebeck. "On the cost side, nice progress was made in lowering the operating cost per shipment handled by 8.4-percent versus the same quarter last year. Included in the results is one of the lowest quarterly jet fuel prices experienced in some years.
 "The only negative in the quarter is the lack of growth in international business. The weak economies of Europe and Japan have hampered growth of the company's international traffic," concluded Liljebeck.
 Airborne Express serves the air express needs of corporate customers with the delivery of time-sensitive documents, letters, small packages and freight throughout the world. Airborne's wide range of products include next-morning, next-afternoon, second-day and same-day delivery. In its fifth decade of international service, Airborne delivers to more than 200 countries worldwide.
 AIRBORNE FREIGHT CORPORATION
 FINANCIAL RESULTS
 (in thousands, except per share data)
 Three months ended Nine months ended
 Sept. 30 1993 1992 1993 1992
 Domestic revenues $378,276 $316,390 $1,087,980 $ 923,600
 International revenues 55,947 55,258 164,890 167,829
 Total revenues 434,223 371,648 1,252,870 1,091,429
 Operating expenses 408,081 362,927 1,198,498 1,077,242
 Earnings from
 operations 26,142 8,721 54,372 14,187
 Interest, net (6,108) (5,346) (18,134) (13,809)
 Earnings Before Income 20,034 3,375 36,238 378
 Taxes
 Income Taxes 8,968 1,311 15,264 747
 Net earnings (loss)
 before changes in
 accounting 11,066 2,064 20,974 (369)
 Cumulative effect of
 changes in accounting -- -- 3,828 --
 Net earnings (loss) 11,066 2,064 24,802 (369)
 Preferred stock
 dividends (695) (694) (2,064) (2,066)
 Net earnings (loss)
 available to common
 shareholders $ 10,371 $ 1,370 $ 22,738 ($ 2,435)
 Net earnings (loss)
 per common share
 (primary):
 Before changes in
 accounting $ 0.53 $ 0.07 $ 0.97 ($ 0.13)
 Cumulative effect
 of change -- -- 0.19 --
 Net earnings (loss)
 per common share $ 0.53 $ 0.07 $ 1.16 ($ 0.13)
 Net earnings (loss)
 per common share
 (fully diluted) $ 0.52 $ 0.07 $ 1.14 ($ 0.13)
 Average primary common
 shares outstanding 19,542 19,307 19,540 19,429
 OPERATING STATISTICS
 (in thousands)
 Three months ended Nine months ended
 Sept. 30 1993 1992 1993 1992
 Shipments
 Domestic:
 Overnight
 Letter 8,277 7,345 24,340 21,872
 0-2 lbs. 10,628 9,448 30,700 27,250
 3-99 lbs. 9,142 7,530 26,134 22,041
 Total 28,047 24,323 81,174 71,163
 Select delivery service
 0-2 lbs. 7,800 5,728 22,779 14,703
 3-99 lbs. 4,706 2,851 13,112 7,866
 Total 12,506 8,579 35,891 22,569
 100 lbs. 90 86 261 248
 Total Domestic 40,643 32,988 117,326 93,980
 International:
 Express 795 727 2,323 2,141
 All other 97 101 291 312
 Total international 892 828 2,614 2,453
 Total shipments 41,535 33,816 119,940 96,433
 Average pounds per
 shipment
 Domestic 4.8 4.8 4.7 4.8
 International 42.9 45.3 43.7 47.1
 Average revenue per pound
 Domestic $1.93 $2.00 $1.96 $2.06
 International $1.47 $1.49 $1.45 $1.46
 AIRBORNE FREIGHT CORP. (NYSE: ABF)
 CONDENSED STATEMENT OF EARNINGS
 Three Months Ended Sept. 30
 1993 1992
 Revenues $434,223,000 $371,648,000
 Earnings before income taxes 20,034,000 3,375,000
 Net earnings 11,066,000 2,064,000
 Net earnings available to
 common shareholders 10,371,000 1,370,000
 Net earnings per common share:
 Primary $0.53 $0.07
 Fully diluted $0.52 $0.07
 Average Primary Common Shares
 Outstanding 19,542,000 19,307,000
 Nine months ended Sept. 30
 1993 1992
 Revenues $1,252,870,000 $1,091,429,000
 Earnings before income
 taxes 36,238,000 378,000
 Earnings (loss) before changes
 in accounting 20,974,000 (369,000)
 Cumulative effect of changes in
 accounting 3,828,000 --
 Net earnings (loss) 24,802,000 (369,000)
 Net earnings (loss) available to
 common shareholders 22,738,000 (2,435,000)
 Net earnings (loss) per common share:
 Before changes in accounting $0.97 ($0.13)
 Cumulative effect of changes
 in accounting $0.19 --
 Net earnings (loss) per
 common share $1.16 ($0.13)
 Net earnings (loss) per common share
 (fully diluted) $1.16 ($0.13)
 Average primary common shares
 outstanding 19,540,000 19,429,000
 -0- 10/25/93
 /CONTACT: Roy C. Liljebeck of Airborne, 206-281-1003/
 (ABF)


CO: Airborne Freight Corp. ST: Washington IN: AIR TRN SU: ERN

IC -- SE004 -- 6256 10/25/93 11:17 EDT
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Date:Oct 25, 1993
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