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 PORTLAND, Ore., Nov. 11 /PRNewswire/ - Sal Cincotta, president and chief executive officer of Arrow Transportation Co. (NASDAQ: ARRW) announced today results for the company's third quarter and nine months ended Sept. 30, 1993. Consistent with the range of expectations for revenue and earnings announced on Oct. 26, 1993, the company reported a third quarter net earnings of $130,000 or 3 cents per share on revenues of $6.2 million compared to $504,000 or 16 cents per share on revenues of $7 million
 For the nine-month period, net income was $524,000 or 16 cents per share on revenues of $17.8 million versus $725,000 or 23 cents per share on revenues of $18.9 million for the same period a year ago.
 Chemical transportation service revenue increased 8 percent in the third quarter and for the nine month period. However, total revenues were lower in both periods as a result of the company's withdrawal from the petroleum and asphalt transportation service business.
 The results for the third quarter and nine-month period reflect the short-term impact on revenue from the late delivery of 60 newly acquired tractors and 16 stainless steel trailers and the company's strategic decision to withdraw from the petroleum and asphalt transportation service business to focus exclusively on chemical transportation services.
 According to Cincotta, the company's initial public offering, completed on July 22, 1993, provided funding for major expansion to the company's transport capability. However, a delay in delivery of the equipment until mid-October 1993 resulted in a decline in anticipated revenue, lower linehaul utilization and lessened operating efficiency during the third quarter.
 William J. Stanners, Jr., chief financial officer, indicated that a higher effective tax rate, a small loss on the disposition of old revenue equipment and increased depreciation impacted results for the third quarter. "Initial operating expenses associated with the integration of this new equipment and certain start-up expenses related to the company's new terminal facilities in Houston and White City, Ore., were a factor during the quarter; however, Arrow is now well positioned for profitable growth," said Stanners.
 Cincotta indicated that Arrow has strengthened its management team with the appointment of experienced tank truck marketing executives to cover the Southwest, Intermountain and Western regions. He further indicated that the company's new Houston terminal, which opened in September, is already beginning to produce revenues.
 "Business continues to improve," said Cincotta. "Management is confident that the infrastructure and capacities we have put into place during the third quarter will contribute to the establishment of a more favorable trend in the fourth quarter."
 Arrow Transportation Co. is engaged primarily in the transportation bulk liquid chemical products. The company serves a wide variety of manufacturing and industrial customers in the western United States and western Canada. With headquarters in Portland, Arrow has terminal facilities in Portland and White City; Longview, Pasco, Spokane and Tacoma, Wash.; Houston; and Downey and Richmond, Calif.
 (Unaudited, in thousands, except per share data)
 Three months ended Nine months ended
 Sept. 30, 1993 1992 1993 1992
 Operating revenues $6,237 $7,036 $17,800 $18,954
 Operating expense 5,252 6,036 15,373 16,793
 Depreciation and
 amortization 462 284 1,232 777
 (Gain) loss on
 disposition of
 revenue equipment 19 (191) (107) (239)
 Total operating expenses 5,733 6,129 16,498 17,331
 Operating income 504 907 1,302 1,623
 Interest expense 259 216 712 612
 Net other expense
 (income) (57) 143 (192) 223
 Income before income taxes 302 548 782 788
 Income tax expense (172) (44) (258) (63)
 Net income $ 130 $ 504 $ 524 $ 725
 Net income per common
 and equivalent share $ 0.03 $0.16 $ 0.16 $ 0.23
 Shares used in per share
 calculations 3,861 3,100 3,356 3,100
 -0- 11/11/93
 /CONTACT: William J. Stanners, Jr., chief financial officer, of Arrow Transportation, 503-286-3661; or Richard Bernot, or Madeleine Franco, of Jordan Richard, 801-595-8611, for Arrow Transportation/

CO: Arrow Transportation ST: Oregon IN: TRN SU: ERN

IC-RB -- SE005 -- 3073 11/11/93 08:46 EST
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Publication:PR Newswire
Date:Nov 11, 1993

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