Wilmington, Ohio-based Air Transport Services Group recorded a $12.2 million profit in the fourth quarter of 2012, down from $13.5 million in the same period a year earlier.
Revenues dropped $11.9 million year-over-year to $154.6 million in the last three months of 2012.
The 2011 results reflected the revenues and earnings from logistics provider D.B. Schenker, which shed its air freight activities in 2011. The company had been ATSG's second-largest customer. The 2012 results were not affected by Schenker.
Despite the losses in the fourth quarter, ATSG saw an upswing in net profits for the full 2012 year. In 2012, the firm recorded a $17.7 million increase in profits, garnering $41.6 million in 2012 compared to $23.9 million in 2011. However, full-year revenues fell by $122.7 million to $607.4 million, down from $730.1 million.
ATSG saw a $3 million pre-tax loss in its airline operations segment compared to a $1.8 million pre-tax profit in the fourth quarter of 2011. That segment also lost revenue, which was down $103.6 million in the quarter from $108.3 million in the last three months of 2011.
ATSG says the biggest contributor to the operational losses was the loss of business from Schenker, which contributed $11.9 million in the fourth quarter of 2011 to operations revenue and $85.7 million for the full 2011 year. Delays in aircraft deployments also affected revenues in the quarter.
Fourth quarter block hours for flying agreements were down 5% from a year earlier, but increased 2% compared to the fourth quarter of 2011 when excluding the Schenker business.
In the fourth quarter, ATSG's leasing arm Cargo Aircraft Management saw earnings increase to $17.7 million, up six percentage points from the same three months of 2011. Revenues in that segment increased 2% to $39.5 million.
Revenues from other businesses, including maintenance, repair and overhaul services, increased 9% in the fourth quarter to $30.5 million, but those profits were down 30% to $3 million year-over-year.