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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
C U R R E N T R E P O R T
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 19, 1996
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CALIBER SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
Ohio 0-10716 34-1365496
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
3560 W. Market Street, Akron, Ohio 44334-0459
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(Address of principal executive offices)
Registrant's telephone number, including area code (330) 665-5646
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Caliber System, Inc. Form 8-K
INFORMATION REQUIRED IN REPORT
Item 5. Other Events
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The Registrant's news release dated December 19, 1996, a copy of which is
attached hereto as Exhibit 99, is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits.
99 Caliber System, Inc. News Release dated December 19, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
CALIBER SYSTEM, INC.
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REGISTRANT
Date: December 19, 1996 By: John E. Lynch
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John E. Lynch
Vice President, General Counsel
and Secretary
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EXHIBIT INDEX
Exhibit No. Description
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99 Caliber System, Inc. News Release dated December 19, 1996
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EXHIBIT 99
CONTACT: R. M. ADAMOV
CALIBER SYSTEM, INC.
(330) 665-8894
FOR IMMEDIATE RELEASE
CALIBER SYSTEM REPLACES VIKING PRESIDENT;
TO CLOSE 30 TERMINALS AND ELIMINATE 1,500 VIKING POSITIONS; AND
PROVIDES FOURTH QUARTER OPERATIONS UPDATE
AKRON, OHIO, DECEMBER 19, 1996 -- Daniel J. Sullivan, Chairman of the
Board, President and CEO of Caliber System, Inc. (NYSE:CBB), today announced
that Rodger G. Marticke, 48, will assume the position of President and CEO of
Viking Freight, Inc., the Company's LTL operating unit based in San Jose,
California. Marticke replaces Ronald G. Pelzel, 56, who will retire at year end.
Replacing Marticke as President of Caliber Logistics is Thomas I. Escott, 44,
formerly Caliber Logistics' Vice President - Sales & Marketing.
Marticke has been President of Caliber Logistics, headquartered in
Hudson, Ohio, since October 1, 1995. He held a number of senior management
positions with Caliber (formerly Roadway Services, Inc.) from 1993 through 1995.
Marticke was a Partner with the consulting firm of Temple, Barker & Sloane,
Inc./Mercer Management Consulting from 1982 through 1992. He has a bachelor of
arts from Cornell University and an MBA from the Harvard Business School.
Pelzel guided the consolidation process of Viking's four regional
carriers, including the convergence of diverse information systems which is now
complete, and he established plans to close three regional headquarters. Pelzel
will stay on for some period, serving as a consultant to Viking during the
management transition.
Sullivan said, "We have made progress at Viking in several areas such
as in linehaul operations and improved revenue yields. However, Viking is still
experiencing excessive losses from operations and continues to incur one-time
costs from the consolidation process. Overall, we will report disappointing
results at Viking in the fourth quarter of 1996 with operating losses continuing
at approximately the same rate experienced in the third quarter. Although the
losses at Viking will continue to negatively impact corporate profits, we expect
Caliber to return to profitability, as previously stated, for the quarter and
the Company will be profitable for the year."
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"We are considering all options for Viking. Studies are being
conducted, under my direction, by internal personnel and outside consulting
teams, which include industry experts as well as corporate reengineering,
consolidation and cost reduction specialists. In the interim, we will move
forward with closing approximately 30 Viking terminals and reviewing other
marginal facilities at Viking for potential closings. Additionally, it is our
objective to eliminate approximately 1,500 positions at Viking in 1997. Both
management and hourly work groups will be affected. We have also announced a
wage freeze for Viking's salaried employees for the first half of 1997, or until
operating results improve. Our employees are well aware of the need to reduce
costs and maintain Viking's high quality of service and are committed to doing
so."
Escott has served as Caliber Logistics' Vice President - Sales &
Marketing since January 1, 1994 and had been Vice President - R&D from November
1992 His prior employment included Associate Partner with Andersen Consulting
and President of Whiteford Transport. He has a bachelor of science in
engineering from Princeton University and an MBA from the Harvard Business
School.
This press release contains "forward-looking statements" regarding
fourth quarter and year-end results as well as the impact of profit improvement
actions. Such statements are based on current expectations and are subject to a
number of risks and uncertainties. Actual results could differ materially from
current expectations due to a number of factors including general economic
conditions; competitive initiatives and pricing pressures; availability and cost
of capital; shifts in market demand; weather conditions; the performance and
needs of industries served by the Company's businesses; actual future costs of
operating expenses such as fuel and related taxes; self-insurance claims and
employee wages and benefits; actual costs of continuing investments in
technology; the timing and amount of capital expenditures; and the actual costs
and effects of the continuing consolidation of the regional carriers.
Caliber System, Inc. is a leading provider of value-added
transportation, logistics and related information services. Its operating
companies include RPS, a business-to-business small-package carrier; Viking
Freight, a supplier of premium regional and national freight service; Caliber
Logistics, a contract logistics provider; Roberts Express, a critical-shipment
carrier; and Caliber Technology, a producer of integrated information services.
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