CNF, Postal Service to Conclude Priority Mail Contract.Business Editors/Transportation Writers PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--Nov. 3, 2000 CNF CNF Configuration (File Name Extension) CNF Conference CNF Conjunctive Normal Form CNF Could Not Find CNF Chin National Front (Burma) CNF Canadian Nature Federation CNF Cornell NanoScale Facility Inc. (NYSE NYSE See: New York Stock Exchange :CNF) announced today that an agreement has been reached by its Emery Worldwide Emery Worldwide was a cargo airline, once was one of the leading carriers in the cargo airline world. Emery started in 1946 and was the first freight forwarder to receive a carrier certificate from the United States Government. Airlines unit and the U.S. Postal Service The U.S. Postal Service (USPS) processes and delivers mail to individuals and businesses within the United States. The service seeks to improve its performance through the development of efficient mail-handling systems and operates its own planning and engineering programs. to conclude a transportation and sortation Identifying objects that are stamped with a bar code and routing them to the appropriate destination. Sortation is typically a high-speed process used in the transportation industry by companies such as Federal Express, UPS and others. See sort and bar code. contract of Priority Mail. Gregory L. Quesnel, CNF president and chief executive officer, said the contract concludes effective Jan. 7, 2001. The original contract was scheduled to be concluded in early 2002. "I want to commend the many EWA EWA Enterprise Wireless Alliance EWA Electronic Warfare Associates, Inc. EWA Energy from Waste Association (UK) EWA Engineered Wood Association EWA Edgewood Arsenal EWA Earl Walls Associates employees who worked diligently to improve Priority Mail service. You accomplished that," said Quesnel. "This was a pilot project from its inception in 1997. After substantial effort by all parties to make this a successful partnership, it is now agreed that it is best for the Postal Service to assume ongoing operating responsibility," he said. Under terms of the agreement, the company retains the right to pursue claims for underpayment under the contract and plans to do so. As a result of the agreement, the company will report the results of the Priority Mail contract as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. and will record an estimated after tax charge for the third quarter of approximately $15 million, which will be reflected in the financial statements to be filed in the company's third quarter 10Q filing with the SEC. The charge was not reflected in the company's financial release on Oct. 18 since terms of the agreement had not been finalized at that time. CNF is a management company of global supply chain services. It has businesses in logistics and distribution management, trucking, air freight and ocean forwarding. This news release contains forward-looking statements, including statements regarding estimated earnings and other anticipated results of operations, which are subject to a number of risks and uncertainties. Forward-looking statements as predictions of future events should not be relied on. In addition to the factors discussed above, factors that could cause actual earnings, results of operations and other matters to differ materially from those discussed in such forward-looking statements include; changes in general business and economic conditions, increasing competition and pricing pressure, changes in fuel prices, uncertainties regarding Emery Worldwide Airline's Priority Mail contract with the United States Postal Service, labor matters, changes in governmental regulation, environmental and tax matters (including claims made by the Internal Revenue Service with respect to aircraft maintenance tax matters), the Department of Transportation investigation relating to Emery Worldwide's handling of hazardous materials, the February 2000 crash of an EWA aircraft, and matters relating to our 1996 spin-off of Consolidated Freightways Corporation. These and other risk factors are discussed in our 1999 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. or in other filings with the Securities and Exchange Commission. As a result, no assurance can be given as to future results of operations or financial condition. |
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