We're proud of our fourth quarter, and we're back.

Market conditions have deteriorated more than we anticipated, as reflected by numerous news accounts of earnings warnings and layoffs, particularly in the auto and high-tech sectors, ... Volume growth, yield growth and weights for February dropped noticeably for all of our operating units.

Volume growth accelerated at the end of (the second quarter) and has continued to accelerate in quarter three.

Continuing weak economic conditions, particularly in the high-tech and durable goods sectors sharply reduced demand for our express services.

Hurricane Katrina had no significant effect on first quarter results, although the storm inflicted some damage to our facilities in the U.S. Gulf Coast region, ... Meanwhile, our operations have resumed in most of the affected areas except for sections of New Orleans.

We do not think there is a mode shift (from air to ground shipments, ... We believe that the express-intensive businesses are the ones that have been punished the most in the recession and the slow recovery.