Printer Friendly

SEA-LAND RESTRUCTURING OPERATIONS AND FUNCTIONS

 RICHMOND, Va., April 15 /PRNewswire/ -- CSX Corporation (NYSE: CSX) today announced its 1993 first-quarter results will include a charge of approximately $93 million, or $61 million after tax. The charge recognizes the costs of restructuring certain operations and functions at CSX's wholly owned container-shipping subsidiary, Sea-Land Service Inc.
 "All CSX units continue to focus sharply on improving operating ratios through productivity gains and cost-saving measures. Sea- Land is now taking decisive steps to lower its costs in the challenging Atlantic trade, while further streamlining operations and functions throughout the company," said John W. Snow, chairman and chief executive officer of CSX. "These initiatives significantly strengthen Sea-Land's competitive position and will make a meaningful contribution to our results in 1993 and future years."
 John P. Clancey, president and chief executive officer of Sea- Land, said, "These changes demonstrate our absolute and continuing resolve to be the low- cost carrier in the trade and to earn the cost of capital for the shareholders of CSX. These actions will produce savings in 1993 and each year thereafter, significantly increasing operating income in future years."
 To reduce costs while meeting current and future market demands, Sea-Land plans a number of changes, including reorganization of services, asset levels and work processes in its Atlantic Division. Marginal offices in Europe will be consolidated or closed, and certain operations will be discontinued or curtailed to improve the division's profitability and return.
 Plans also include the elimination of up to 600 positions, 7 percent of Sea-Land's 8,700 work force in the United States and overseas. Most of these positions have been identified, and severance notices will be issued next week.
 Additionally, and as announced previously, Sea-Land's corporate offices will be moved to Liberty Corner, N.J., from Edison, N.J., early this summer. Further cost reductions will be derived from data center and systems support consolidation throughout the company's worldwide operations.
 Sea-Land Service Inc., a unit of CSX Corporation, is a world leader in international freight transportation and related trade services. Sea-Land operates more than 80 container ships in U.S. and foreign trade and serves more than 100 ports in 70 countries and territories.
 CSX Corporation, headquartered in Richmond, Va., is an international transportation company offering a variety of rail, container-shipping, intermodal, trucking and barge services.
 -0- 4/15/93
 /CONTACT: Thomas E. Hoppin or Suzanne S. Walston of CSX, 804-782-1400/
 (CSX)


CO: CSX Corporation; Sea-Land Service Inc. ST: Virginia, New Jersey

IN: TRN SU: RCN

TW -- DC010 -- 6066 04/15/93 09:28 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 15, 1993
Words:419
Previous Article:CENTRAL FIDELITY REPORTS RECORD FIRST QUARTER EARNINGS
Next Article:GENTEX REPORTS RECORD FIRST QUARTER REVENUES AND EARNINGS
Topics:


Related Articles
Shipping software.
SEA-LAND SERVICE TO MOVE CERTAIN OPERATIONS TO TEXAS
EXCLUDING CHARGE, CSX EARNS $52 MILLION IN QUARTER DESPITE STORM, STRIKE AND WEAK COAL MARKET
SEA-LAND FILES TO REFLAG 13 VESSELS;TO CONTINUE PUSH FOR MARITIME REFORM
SEA-LAND ANNOUNCES GLOBAL INTEGRATION: FUNCTIONS TO BE CONSOLIDATED INTO NEW HEADQUARTERS IN CHARLOTTE, N.C.
CSX EXPECTS TO RECORD SECOND-QUARTER CHARGE
CSX EARNINGS RISE 14 PERCENT TO $184 MILLION IN SECOND QUARTER, EXCLUSIVE OF PREVIOUSLY ANNOUNCED CHARGE AND ASSOCIATED EXPENSES
OGLETHORPE POWER CORPORATION BOARD APPROVES NEW RESTRUCTURING AGREEMENT
Secretary Of State Albright, Senator Helms Discuss International Trade With Sea-Land CEO John Clancey
Lands' End Announces Restructuring.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters