SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31,June 30, 1996
Commission File Number 1-6512
AIRBORNE FREIGHT CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware
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(State of incorporation or organization)
91-0837469
---------------------------------
(IRS Employer Identification No.)
3101 Western Avenue
P.O. Box 662
Seattle, Washington 98111-0662
------------------------------
(Address of Principal Executive Office)
Registrant's telephone number, including area code: (206) 285-4600
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Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes: XXX No:
--- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of the close of the period covered by this report.
Common Stock, par value $1 per share
Outstanding (net of 315,150 treasury shares)
as of March 31,June 30, 1996 21,129,22421,134,281 shares
-----------------
AIRBORNE FREIGHT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET EARNINGS
(Dollars in thousands except per share data)
(Unaudited)
Three Months Ended March 31Six Months Ended
------------------ ----------------
June 30 June 30
------- -------
1996 1995 1996 1995
---- ---- ---- ----
REVENUES:
Domestic $506,121 $442,177$524,055 $452,631 $1,030,176 $ 894,808
International 91,788 87,73998,343 93,309 190,131 181,048
-------- -------- 597,909 529,916---------- ----------
622,398 545,940 1,220,307 1,075,856
OPERATING EXPENSES:
Transportation purchased 202,532 188,785207,207 196,726 409,739 385,511
Station and ground operations 192,317 165,114193,346 170,812 385,663 335,926
Flight operations and maintenance 94,769 78,06192,973 79,311 187,742 157,372
General and administrative 43,262 37,49447,903 37,019 91,165 74,513
Sales and marketing 15,448 15,63115,030 16,250 30,478 31,881
Depreciation and amortization 38,861 34,80240,124 34,846 78,985 69,648
-------- -------- 587,189 519,887---------- ----------
596,583 534,964 1,183,772 1,054,851
-------- -------- ---------- ----------
EARNINGS FROM OPERATIONS 10,720 10,02925,815 10,976 36,535 21,005
INTEREST, NET 8,341 6,7258,191 6,964 16,532 13,689
-------- -------- ---------- ----------
EARNINGS BEFORE INCOME TAXES 2,379 3,30417,624 4,012 20,003 7,316
INCOME TAXES 1,065 1,4246,935 1,750 8,000 3,174
-------- -------- ---------- ----------
NET EARNINGS 1,314 1,88010,689 2,262 12,003 4,142
PREFERRED STOCK DIVIDENDS 68 7168 136 139
-------- -------- ---------- ----------
NET EARNINGS AVAILABLE $ 1,24610,621 $ 1,8092,194 $ 11,867 $ 4,003
TO COMMON SHAREHOLDERS ======== ======== ========== ==========
NET EARNINGS PER COMMON SHARESHARE:
Primary - $ .06.50 $ .09.10 $ .56 $ .19
======== ======== ========== ==========
Fully Diluted - $ .48 $ .10 $ .56 $ .19
======== ======== ========== ==========
DIVIDENDS PER COMMON SHARE $ .075 $ .075 $ .15 $ .15
======== ======== ========== ==========
See notes to consolidated financial statements.
AIRBORNE FREIGHT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31June 30 December 31
------------------- -----------
1996 1995
---- ----
(Unaudited)
ASSETS
------
CURRENT ASSETS:
Cash $ 12,16312,362 $ 17,906
Trade accounts receivable,
260,123 259,408
less allowance of $7,875$7,915 and $7,750 263,075 259,408
Spare parts and fuel inventory 33,03935,645 33,792
Deferred income tax assets 17,07517,828 16,135
Prepaid expenses 23,45721,926 24,887
---------- ----------
TOTAL CURRENT ASSETS 345,857350,836 352,128
PROPERTY AND EQUIPMENT, NET 836,715854,618 842,703
EQUIPMENT DEPOSITS and OTHER ASSETS 28,78925,094 22,553
---------- ----------
TOTAL ASSETS $1,211,361$1,230,548 $1,217,384
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 126,938123,602 $ 136,987
Salaries, wages and related taxes 47,72751,419 49,106
Accrued expenses 68,66467,728 66,679
Income taxes payable 2,2704,637 1,967
Current portion of debt 1,7111,050 5,790
---------- ----------
TOTAL CURRENT LIABILITIES 247,310248,436 260,529
LONG-TERM DEBT 372,736378,649 364,621
SUBORDINATED DEBT 115,000 115,000
DEFERRED INCOME TAX LIABILITIES 38,28940,145 38,242
OTHER LIABILITIES 27,63528,784 28,729
REDEEMABLE PREFERRED STOCK 3,948 3,948
SHAREHOLDERS' EQUITY:
Preferred Stock, without par value -
Authorized 5,200,000 shares,
no shares issued
Common stock, par value $1 per share -
Authorized 60,000,000 shares
Issued 21,444,37421,449,431 and 21,397,865 shares 21,44421,449 21,398
Additional paid-in capital 186,368186,470 185,947
Retained earnings 199,602208,638 199,941
---------- ----------
407,414416,557 407,286
Treasury stock, 315,150 shares, at cost (971) (971)
----------- ----------
----------
406,443415,586 406,315
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,211,361$1,230,548 $1,217,384
========== ==========
See notes to consolidated financial statements.
AIRBORNE FREIGHT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
ThreeSix Months Ended
March 31
------------------June 30
----------------
1996 1995
---- ----
OPERATING ACTIVITIES:
Net Earnings $ 1,31412,003 $ 1,8804,142
Adjustments to reconcile net earnings to net
cash provided by provided by operating activities:
Depreciation and amortization 35,867 32,33572,965 64,689
Provision for aircraft engine overhauls 2,994 2,4676,020 4,959
Deferred income taxes (893) (1,150)211 (1,178)
Other (1,048) (3,175)147 (2,791)
-------- --------
CASH PROVIDED BY OPERATIONS 38,234 32,35791,346 69,821
Change in:
Receivables (715) 4,153(3,667) 1,901
Inventories and prepaid expenses 2,183 (3,113)1,108 (2,938)
Accounts payable (10,049) 4,285(13,385) (5,545)
Accrued expenses, salaries 909 1,720
and& taxes payable 6,032 2,283
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 30,562 39,40281,434 65,522
INVESTING ACTIVITIES:
Additions to property and equipment (34,681) (55,588)(85,621) (106,098)
Dispositions of property and equipment -- 5552 340
Expenditures for engine overhauls (3,861) (2,555)(6,966) (3,922)
Other (613) (291)(998) (257)
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (39,155) (58,379)(93,533) (109,937)
FINANCING ACTIVITIES:
Proceeds onfrom bank notes,note borrowings, net 8,200 33,70014,200 68,600
Principal payments on debt (4,164) (12,893)(4,912) (17,071)
Proceeds from common stock issuance 467574 320
Dividends paid (1,653) (1,653)(3,307) (3,301)
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 2,850 19,4746,555 48,548
-------- --------
NET INCREASE (DECREASE) IN CASH (5,743) 497(5,544) 4,133
CASH AT JANUARY 1 17,906 10,318
-------- --------
CASH AT MARCH 31JUNE 30 $ 12,16312,362 $ 10,81514,451
======== ========
See notes to consolidated financial statements.
AIRBORNE FREIGHT CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31,June 30, 1996
(Unaudited)
NOTE A--SUMMARY OF FINANCIAL STATEMENT PREPARATION:
The consolidated financial statements included herein are unaudited but
include all adjustments which are, in the opinion of management, necessary
for a fair presentation of the financial position and results of operations
and cash flows for the interim periods reported.
Certain amounts for prior periods have been reclassified to conform to the
1996 presentation.
NOTE B--LONG-TERM DEBT:
Long-term debt consists of the following:
MarchJune 30 December 31
December 31------- -----------
1996 1995
---- ----
(In thousands)
Senior debt:
Revolving bank credit $135,000 $115,000
Notes payable 16,50022,500 28,300
Senior notes 200,000 200,000
Revenue bonds 13,200 13,200
Other debt 9,7478,999 10,331
-------- --------
374,447379,699 366,831
Subordinated debt:
Senior subordinated notes 115,000 115,000-- 3,580
Convertible subordinated debentures -- 3,580115,000 115,000
-------- --------
115,000 118,580
-------- --------
Total long-term debt 489,447494,699 485,411
Less current portion 1,7111,050 5,790
-------- --------
$487,736$493,649 $479,621
======== ========
NOTE C--EARNINGS PER COMMON SHARE:
NetPrimary earnings per common share are computed by dividing net earnings
available to common shareholders bybased upon the weighted average
number of common shares outstanding during the interim period plus dilutive
common equivalent shares applicable to the assumed exercise of employeeoutstanding
stock options.
Fully diluted earnings per share for the three months ended June 30, 1996,
assumes conversion of the Company's redeemable preferred stock and
convertible subordinated debentures as well as the dilutive common
equivalent shares applicable to the assumed exercise of stock options. Net
earnings as adjusted for the elimination of preferred stock dividends and
interest expense, net of applicable taxes, relative to the assumed
conversion was $11,753,285 for the three month period.
Fully diluted earnings per share arefor the six month period ended June 30,
1996 and the three and six month periods ended June 30, 1995 were the same
as netprimary earnings per common share for the interim periods presented herein.
Average common shares outstanding used in earnings per share computations
at March 31, 1996 and 1995 were 21,328,000 and 21,184,000, respectively.share.
Average shares outstanding used in earnings per share computations were as
follows:
Three Months Ended Six Months Ended
------------------ ----------------
June 30 June 30
------- -------
1996 1995 1996 1995
---- ---- ---- ----
AVERAGE SHARES OUTSTANDING
Primary 21,316 21,178 21,321 21,182
Fully Diluted 24,728 21,180 21,322 21,182
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS:
The Company's operating performance in the second quarter of 1996 resulted
in significantly higher operating income and net earnings compared to the
second quarter of 1995, and compared to the weather-hampered results of the
first quarter of 1996 was
negatively impacted by extreme1996. Key factors contributing to the improved operating
results include yield improvements, productivity gains, and extended winter weather conditions.
These conditions impeded normal operations and resulted in lost business
and significantly higher operating costs during the quarter.solid shipment
growth.
Net earnings available to common shareholders for the firstsecond quarter of
1996 were $1.2$10.6 million, or $0.06$0.50 per share, compared to $1.8$2.2 million, or
$0.09$0.10 per share, for the second quarter of 1995. Net earnings were
$11.9 million, or $0.56 per share for the first six months of 1996,
compared to $4.0 million, or $0.19 per share for the corresponding period
in 1995.
Earnings per share on a fully diluted basis for the second quarter of 1995. Management estimates the combination of
lost business1996
and incremental operating costs had the effect of reducing
earnings from operations by approximately $12 to $13 million. In addition,
the Federal Excise Tax on aviation fuel, which was effective October 1,
1995 added $1.7 million to operating expenses inwere $0.48 and $0.10, respectively, and for the first quartersix months
of 1996. Offsetting these negative impacts was1996 were $0.56 compared to $0.19 for the reductioncorresponding period in operating
costs by $5.5 million as a result of the suspension of the Aviation Excise
Tax on January 1, 1996.1995.
The following table sets forth selected shipment and revenue data for the
periods indicated:
Three Months Ended March 31
---------------------------Six Months Ended
------------------ ----------------
June 30 June 30
------- -------
1996 1995 1996 1995
---- ---- ---- ----
Shipments (in thousands):
Domestic
Overnight
Letters 9,527 9,1309,620 9,017 19,147 18,147
0-2 Lbs. 13,830 12,01314,173 12,208 28,003 24,221
3-99 Lbs. 12,317 10,47212,312 10,509 24,629 20,981
------ ------ 35,674 31,615
Deferred------- -------
36,105 31,734 71,779 63,349
Select Delivery Service
0-2 Lbs. 17,190 13,90317,751 14,558 34,941 28,461
3-99 Lbs. 9,507 7,6769,352 8,143 18,859 15,819
------ ------ 26,697 21,579------- ------
27,103 22,701 53,800 44,280
100 Lbs. and& over 7375 81 148 162
------ ------ ------- -------
Total Domestic 62,444 53,27563,283 54,516 125,727 107,791
------ ------ ------- -------
International
Express 1,058 9361,129 1,013 2,187 1,949
All Other 146 130150 142 296 272
------ ------ ------- -------
Total International 1,204 1,0661,279 1,155 2,483 2,221
------ ------ ------- -------
Total Shipments 63,648 54,34164,562 55,671 128,210 110,012
====== ====== ======= =======
Average Pounds per Shipment:
Domestic 4.5 4.5 4.5 4.5
International 58.4 67.857.2 62.5 57.8 65.0
Average Revenue per Pound:
Domestic $1.82 $ 1.80 $1.81 $ 1.821.81
International $1.32 $ 1.291.30 $1.30 $ 1.221.26
Average Revenue per
Shipment:
Domestic $ 8.088.25 $ 8.298.27 $ 8.17 $ 8.28
International $76.24 $82.31$76.89 $80.79 $76.57 $81.52
Total shipments increased 16.0% in the second quarter of 1996 compared to
an increase of 20.0% in the second quarter of 1995. Domestic and
international shipments increased 16.1% and 10.7%, respectively, during
this period of 1996 compared to 20.0% and 17.7%, respectively, for the
corresponding period of 1995. Domestic shipments increased 16.6% and
international shipments increased 11.8% in the first half of 1996 compared
to 20.1% and 17.1%, respectively, in the first half of 1995.
The growth in domestic shipments has been aided by improved growth in the
Company's overnight service product. For the first six months of 1996,
overnight shipments increased 13.3% compared to an increase of 9.1% for the
comparable period in 1995. Also, domestic shipment growth continued to be
aided by solid growth in the deferred service product, which increased
21.5% in the first six months of 1996, accounting for 42.8% of total
domestic shipments in the first half of 1996 compared to 41.1% for the same
period in 1995.
Domestic revenues increased 15.8% in the second quarter of 1996 and 15.1%
for the first six months of 1996 compared to 11.0% and 11.2% for the
comparable periods in 1995, respectively. The Company experienced a
milestone during the second quarter of 1996 relative to domestic revenue
growth that has not occurred in several years. The percentage growth in
domestic revenue did not lag shipment growth, but was relatively equal to
the percentage growth in domestic shipments. Also, the average revenue per
domestic shipment increased during the second quarter of 1996 to $8.25,
compared to $8.08 in the first quarter of 1996. These improved domestic
revenue trends reflect the extra focus placed on enhancing yields. This
focus began in the third quarter of 1995 and these efforts continue to be
an ongoing focus of the Company.
International shipments increased 10.7% and 11.8% in the second quarter and
first six months of 1996, respectively, compared to 20.1%17.7% and 17.1% in the
first quartercomparable periods of 1995. TotalInternational revenues increased 12.8%5.4% in the
firstsecond quarter of 1996 compared to 13.6%21.4% in the first quarter of 1995.
Domestic shipments increased 17.2% in the first quarter of 1996 compared to
20.2% for the same period of 1995. Domestic shipment growth during the
first quarter of 1996 was positively impacted by the higher growth rate of
overnight shipments which was 12.8% compared to 9.4% in the first quarter
of 1995. Growth in the Company's deferred service products which provide
next afternoon1995, and second day delivery service also continues to aid
domestic growth. For the first quarter of 1996, deferred service accounted
for over 42.7% of total domestic shipments, compared to 40.5% for the first quarter of 1995.
Domestic revenues increased 14.5% in the first quarterhalf of
1996 compared to
11.4% in the first quarter of 1995. First quarter 1996 domestic revenue
growth was positively impacted by a comparatively stronger growth in higher
yielding overnight shipments and the Company's continuing focus on yield
enhancement initiated during the latter half of 1995. These factors
combined to produce a more stable domestic yield environment in the first
quarter of 1996 compared to the first quarter of 1995.
International shipments1995 increased 12.9% in the first quarter of 1996
compared to 16.4% in the comparable quarter of 1995. International
revenues increased 4.6% in the first quarter of 1996 compared to 25.9% in
the first quarter of 1995.5.0% and 23.5%, respectively.
International revenue per shipment and the average weight per shipment
decreased significantly as a result of the lower unit growth in higher yielding freight
shipments in the first quarterhalf of 1996 compared to 1995. The weakness in heavier weight freight shipments
was primarily for shipments fromHowever, gross
margins on international business improved 13.0% over the Far Eastfirst half of
1995.
Assuming the economy remains strong, the factors that contributed to the
United States.
The Company is encouraged byCompany's growth and improved operating results during the positive domestic yield environment as the
Company and competitors remain focused on improving operating margins.
This environmentsecond quarter,
should have a positive effect through the balance of 1996. However, the
overall growth in business during the last couple weeks of the second
quarter and the first few weeks of the third quarter has not been as strong
as expected. While this lower growth may not be indicative of a definitive
trend, a continuing softness could negatively impact operating results in
the last half of the year. The Company also expects to continue its focus on improving
international margins.
Operating expenses as a percentage of revenues were 98.2%97.0% for the first quartersix
months of 1996 compared to 98.1%98.0% in the first quartersix months of 1995 and 96.9%
for all of 1995. Operating cost per shipment handled decreased 3.6%3.8% to
$9.23 for the first six months 1996 compared to the first six months of
1995. The operating cost per shipment for the second quarter of 1996
decreased 3.9% to $9.24, compared to the second quarter of 1995. The
Company experienced a 5.4% improvement in productivity for the second
quarter of 1996, compared to 3.5% decrease in the firstsecond quarter of 1995. Operating expenses were negatively impacted by severe winter weather
conditions in January and February of 1996. These weather conditions
impeded operations throughout much of the northeast and midwest U.S.,
including the Company's central hub operation in Wilmington, Ohio. This
resulted in lost business, diminished productivity improvements, and added
significantly to operating costs.
The Company experienced a 3.2% improvement in productivity for the first
quarter of 1996,1995, as measured by
shipments handled per paid employee hour compared to 9.5% inwhile productivity improvement for
the first half of the year was approximately 4.2% over the corresponding
period of 1995. Operating expenses were negatively impacted during the
first quarter of 1995.1996 by severe winter weather conditions which diminished
productivity improvements, added significantly to operating costs, and
resulted in lost business. Comparisons of certain operating expense
components are discussed below.
Transportation purchased decreased as a percentage of revenues to 33.9%33.6% in
the first quartersix months of 1996 compared to 35.6%35.8% in 1995. This decrease was
primarily due to two factors. Commercial airline costs although higher in
total, were lower as a
percentage of total revenues due to the lower growth in international
freight shipments discussed above. Also, the suspension of the Federal
Aviation Excise Tax on January 1, 1996 reducedresulted in the avoidance of costs
in the first quarter by $5.5half of 1996 of $11.0 million, compared to the first quarterhalf of
1995.1995 when approximately $10.4 million of costs related to this tax were
incurred.
Station and ground expense as a percentage of revenues was 32.2%31.6% in the
first quartersix months of 1996 compared to 31.2% in the first quartersix months of 1995.
This category of expense was negatively impacted by the weather resulting in
lower productivity improvement than in previous periods, and additional
costs.during the
first quarter of 1996.
Flight operations and maintenance expense as a percentage of revenues
during the first quartersix months of 1996 was 15.9%15.4%, compared to 14.7%14.6% in the
first quartersix months of 1995. This category of cost was negatively impacted
during the first half of 1996 by higher jet fuel costs. The average
aviation fuel price for the first quarterhalf of 1996 was $0.70$0.71 per gallon
(including the $0.043 per gallon Federal Excise Tax implemented October 1,
1995) compared to $0.59 per gallon in the first quarterhalf of 1995. Aviation
fuel consumption increased to 40.279.3 million gallons in the first quartersix months
of 1996, a 19.5%16.8% increase compared to the first quartersix months of 1995. The
increase in fuel consumption is a result of additional Company operated
aircraft placed in service since the first quarterhalf in 1995 and the impact of
1995.the severe weather in 1996.
The increased number of aircraft in service also accounted for a large
portion of the increase in depreciation and amortization expense in the
first quarterhalf of 1996.
General and administrative and sales and marketing expenses on a combined
basis decreased as a percentage of revenues in the first quarterhalf of 1996 was 10.0%
compared to 9.9% in the comparable period of 1995. This was primarilyAny inflationary
pressure on costs has effectively been offset as the result of continuing
productivity gains and a strong focus on all discretionary spending.
Interest expense in the first quarterhalf of 1996 was higher than the same period
ofin 1995 due to higher average outstanding borrowings and to the lower level
of capitalized interest in the 1996 period.
The Company's effective tax rate was 44.8%40.0% in the first quartersix months of 1996
compared to 43.1%43.4% in the first quartersix months of 1995 and 39.9% for all of
1995. The higher effective tax rate for the first quarterhalf of 1995 compared to
1996 was a result of certain taxes that are not directly related to the
level of earnings, resulting in a higher rate in periods of lower earnings.
LIQUIDITY AND CAPITAL RESOURCES:
Capital expenditures and associated financing continuecontinued to be the primary
factors affecting the financial condition of the Company. The Company
anticipates total capital expenditures to approximate $225$210 - $220 million
in 1996, of which a significant portion is related to the acquisition and
modification of aircraft. During the first quarterhalf of 1996, total capital
expenditures net of dispositions were $35$86 million. The principal sources
of liquidity for financing capital expenditures during the first quarterhalf of
1996 were cash provided by operations and financing under the Company's
bank lines of credit.
The Company's $250 million unsecured revolving bank credit agreement has
traditionally been used as a major source of liquidity for periods between
other financing transactions. The Company also has available $65 million
under unsecured uncommitted money market lines of credit with several
banks, used in conjunction with the revolving credit agreement to
facilitate settlement and accommodate short-term borrowing fluctuations.
At March 31,June 30, 1996, a total of $151.5$157.5 million was outstanding under the
revolving bank credit and money market credit lines.
The Company amended its revolving bank credit agreement effective
May 1, 1996, resulting in the agreement being effective for a five-year
term through May 31, 2001.
In management's opinion, the available capacity under the bank credit
agreements coupled with internally generated cash flow from remaining 1996
operations and other sources of borrowing should provide adequate
flexibility to finance anticipated capital expenditures for the balance of
1996.
PART II. OTHER INFORMATION
--------------------------
Item 5. Other Information.
Mary Agnes Wilderotter, currently Executive Vice President, National
Operations of AT&T Wireless Services (AWS) and Chief Executive Officer of
AWS's Aviation Communications Division, was appointed to the Company's
Board of Directors at the April 23, 1996 board meeting. Ms. Wilderotter
will join the board on August 7, 1996.
Item 6. Exhibits and Reports onor Form 8-K.
(a) Exhibits -
EXHIBIT NO. 10 - Material Contracts
10(a) Airborne Freight Corporation Director Stock Bonus Plan dated
April 23, 1996.
10(b) Second Amendment to Credit Agreement dated May 1, 1996
among the Company, as borrower, and Wachovia Bank of Georgia, N.A., as
Agent, and Wachovia Bank of Georgia, N.A., ABN AMRO Bank N.V., United
States National Bank of Oregon, Bank of America NW, N.A., CIBC, Inc.,
National City Bank, Columbus, as assignee of Continental Bank N.A., Bank of
America National Trust and Savings Association, The Bank of New York and
NBD Bank, N.A., as banks.
EXHIBIT NO. 27 - Financial Data Schedule
(b) Reports on form 8-K - A Form 8-K dated April 23, 1996, has been
duly filed. The form included the following information:
(1) Election of Directors for terms expiring in 1999.
(2) Approval of the selection of Deloitte & Touche LLP as the
independent public accountants for the ensuing year.
(3) Declared dividends on common and preferred stock.
SIGNATURES
----------
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized:
AIRBORNE FREIGHT CORPORATION
----------------------------
(Registrant)
Date: 5/14/8/12/96 /s/Roy C. Liljebeck
------- --------------------------------------------- -------------------------
Roy C. Liljebeck
Executive Vice President,
Chief Financial Officer
Date: 5/14/8/12/96 /s/Lanny H. Michael
------- -------------------------------------------- -------------------------
Lanny H. Michael
Senior Vice President,
Treasurer and Controller