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CAROLINA FREIGHT CORPORATION ANNOUNCES THE ELIMINATION OF ITS COMMON STOCK DIVIDEND

 CHERRYVILLE, N.C., Jan. 10 /PRNewswire/ -- The board of directors of Carolina Freight Corporation (NYSE: CAO) suspended payment of dividends on the common stock of the corporation at a meeting held Jan. 10, 1994.
 The company also stated that it expects fourth quarter 1993 results to be a loss that is larger than anticipated. The expected results are, however, better than those reported in the fourth quarter of 1992. The loss was due to lower-than-expected price levels and higher labor costs.
 Larry R. Scott, vice chairman and CEO, stated: "This dividend suspension is in response to the preliminary fourth quarter results and is consistent with our ongoing strategy to minimize all costs and to reduce debt. This strategy, of which suspension of the dividend is, unfortunately, a part, will best protect the long-term interests of our shareholders. We are making progress and hope that our shareholders will view this as a needed, positive step."
 Scott continued, "We believe that the most important job at hand is to get the company in position to return to profitability. To that end, we have taken the following steps at Carolina Freight Carriers and G.I. Trucking, our less-than-truckload subsidiaries: (1) begun the implementation of a new origin terminal loading plan that will eliminate substantial amounts of freight handling; (2) full implementation of a computerized dock/yard control system, which will substantially reduce costs in our breakbulk facilities; and (3) implemented a general rate increase of 4.7% on Jan. 3."
 Carolina Freight Corporation is a holding company that specializes in freight transportation through its subsidiaries. Its primary subsidiaries are: Carolina Freight Carriers Corporation, G.I. Trucking Company, Cardinal Freight Carriers, The Complete Logistics Company, and Innovative Logistics Incorporated. Consolidated revenue for the 52 weeks ended Sept. 11, 1993 was $841,922,000.
 For confirmation contact:
 John B. Yorke
 Vice President, Secretary, and General Counsel
 Carolina Freight Corporation
 P.O. Box 1000
 Cherryville, N.C. 28021
 -0- 1/10/94
 /CONTACT: Shawn W. Poole, Carolina Freight, 704-435-6811, ext. 2260/
 (CAO)


CO: Carolina Freight Corporation ST: North Carolina IN: TRN SU: DIV

MM -- CH013 -- 0753 01/10/94 17:59 EST
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Publication:PR Newswire
Date:Jan 10, 1994
Words:356
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