ABERDEEN, Scotland The volatile national economy wasnt kind to Greyhound Lines during the six months ended March 31, reducing revenue and forcing a number of cost-cutting measures, including job eliminations, cutbacks in service and consolidation of offices and functions.

Aberdeen-based FirstGroup plc, which owns Greyhound, along with First Student and First Transit in the U.S. and Canada, reported last month that Greyhound had total revenue of $1.11 billion for the year ended March 31, and operating profit of $91.7 million.

Comparable figures for fiscal 2008 are not available because of the timing of FirstGroups purchase of Greyhound and its then-parent company, Laidlaw International.

However, FirstGroup said Greyhound revenues began slumping during the third quarter of last year as the national recession deepened. To mitigate the impact on Greyhound profitability, company managers reduced Greyhound mileage in the U.S. by 7.6 percent and by 3.5 percent in Canada where regulatory approval is required before routes can be changed or cut.

"These cost actions have maintained revenue per mile and further reductions are planned as appropriate," FirstGroup said as it released its corporate financial results for fiscal 2009.

In addition to the route cutbacks, a number of Greyhound support operations are being moved from its headquarters in Dallas to Cincinnati, where FirstGroup maintains its North American base.

"As a result of the Greyhound merger with FirstGroup America, several of our departments have been consolidated in order to maximize efficiency and reduce costs," a Greyhound spokesman said.

Greyhound is moving units that handle information technology, risk management and legal issues, with the possibility of accounting functions also going to Cincinnati, the spokesman said.

Greyhound employs more than 600 people at its downtown Dallas headquarters. The spokesman said the company remains "committed to remaining in Dallas at this time."

"We don't know at this time exactly how many employees will be going to Cincinnati because details of that plan are still being finalized," said another spokesperson.

Companywide, 1,100 Greyhound personnel are being let go as a result of the cost reduction program.

Additionally, efforts are being made to cut indirect costs and to reduce agency commissions on ticket sales.

Meanwhile, FirstGroup said it was encouraged by the results of BoltBus, the curbside intercity service that Greyhound initiated last year.

After ordering 140 Prevost coaches in 08 to upgrade the Greyhound fleet and provide additional buses for Boltbus, FirstGroup said it is "delaying any major capital expenditure programs while the economy remains weak."

FirstGroups other U.S. units, First Student and First Transit, reported strong gains for fiscal 2008.

Corporatewide, FirstGroup revenue was up 31 percent during fiscal '09, while adjusted operating profit was 38 percent higher than fiscal '08.