CNF Combines Emery Worldwide, Menlo Logistics and Vector SCM to Form Menlo Worldwide.Business Editors/High-Tech Writers NOTE TO MEDIA: Photo and Logo are available in a Smart News Release(TM) on Business Wire's Home Page at www.businesswire.com and at www.newstream.com 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)--Dec. 5, 2001 New Global Company to Provide Single Source for Full Range of Logistics, Technology, Transportation and Forwarding Solutions 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 that it is combining its Menlo Logistics, 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. and Vector SCM (1) (Software Configuration Management, Source Code Management) See configuration management. (2) See supply chain management. operations to form Menlo Worldwide Menlo Worldwide is a global supply chain company based in San Mateo, California which operates in approximately 14 countries worldwide. Its core business offerings include 3rd-party logistics and 4th-party supply chain management. , a new company that begins today as a leader in the global logistics, transportation, freight forwarding and supply chain management field. By providing customers around the world with a full range of logistics services from a single source, Menlo Worldwide is much better positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the growth prospects of the enormous global supply chain management market than any of the entities on their own, said Gregory L. Quesnel, president and chief executive officer of CNF. Menlo Logistics and its customers will benefit immediately from being a part of Emery's extensive worldwide network, which provides service to more than 200,000 customers in over 200 countries. They will also benefit from Emery's extensive international logistics The negotiating, planning, and implementation of supporting logistic arrangements between nations, their forces, and agencies. It includes furnishing logistic support (major end items, materiel, and/or services) to, or receiving logistic support from, one or more friendly foreign projects and locations, including those in China, India, South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Singapore and western and eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , which will be absorbed into the new organization. Menlo Worldwide will have combined annual revenue of $3 billion, 15,000 employees and more than 200 service centers and operations facilities. Headquarters for Menlo Worldwide will be Redwood City Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Ca. Vector SCM headquarters will remain in Novi, Michigan Novi is a city in Oakland County of the U.S. state of Michigan. It is a suburb of Detroit. As of the 2000 census, the city population was 47,386. In 2007, the city completed a special census which places the current population at 52,231. . John H. Williford, formerly chief executive officer of Menlo Logistics, will head the newly combined companies as president and chief executive officer of Menlo Worldwide. Chutta Ratnathicam, currently chief executive officer of Emery, will return to his former position as chief financial officer of CNF. "There is a clear trend among companies -- from middle market to giant multinationals -- to outsource the management of increasingly complex supply chains and logistics services in order to lower costs, reduce inventories, and increase speed, flexibility and efficiency," said Quesnel. "Menlo Worldwide is ideally positioned to meet this growing demand by combining its air and ocean freight forwarding competencies, its extensive proprietary information systems and a full range of value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. supply chain management services including transportation, warehouse, inventory management and customs clearance on a global scale. "We'll be able to help customers supply factories, distribute products, source supplies and manage their inventories faster, more efficiently, and at lower cost than ever before. By combining the strengths already within CNF, we have created a global logistics, transportation and forwarding provider that we believe is better integrated and more clearly focused than any other company serving this market." Emery, newly aligned as a division of Menlo Worldwide, will continue to provide full network service and coverage for its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. overnight and deferred services by utilizing a fleet of contract air carriers, as it has done since mid-August. CNF also announced that its certificated airline subsidiary, Emery Worldwide Airlines, would not resume operations. The airline has not been flying since Aug. 13. "By altering the basic business model of Emery in North America, we are taking a major step in CNF's strategy of reducing assets in a way that will benefit both customers and investors," Quesnel said. "Emery freight division customers utilizing domestic and international services can rely on Emery to offer its extensive services as usual with no interruptions." The company will take an after tax charge of approximately $200 million in the fourth quarter for not continuing the operations of the airline, reflecting the planned disposal of all aircraft, leases and other costs. Quesnel said that the formation of Menlo Worldwide effectively restructured the CNF portfolio of companies into two basic operating companies, Con-Way Transportation Services and Menlo Worldwide. He said the restructuring solidifies the company's position as a leader in supply chain management. This worldwide network makes more efficient use of deployed assets and better leverages Emery's global coverage with Menlo and Vector's leading SCM skills. Williford, the new CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Menlo Worldwide, said, "This new company brings together an exceptional team of experienced professionals, cutting-edge technology, engineering and execution skills on a global scale. "For customers who want to work with us on a transactional basis, we offer Emery's global network of air and ocean forwarding, customs brokerage and warehousing combined with Menlo and Vector SCM's engineering and information technology skills. For customers who want a more strategic relationship, we offer Menlo and Vector's global, world-class integrated logistics and fourth-party logistic services (4PL) combined with Emery's geographic coverage." Menlo Worldwide is organized into four divisions: Emery, a division of Menlo Worldwide, consists of Emery's international air and ocean forwarding, North American airfreight air·freight n. 1. A system of transporting freight by air. 2. The amount charged for transporting freight by air. air , customs brokerage and expedited services. It builds on Emery's leading position in expedited freight shipping in North America and international forwarding services. Peter Quantrill, vice president of international operations and Eric Kirchner, vice president of North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. , have been named executive vice presidents, reporting to Williford. Menlo Worldwide Logistics, combines the global logistics activities of Emery with Menlo Logistics to provide large and mid-size global clients with third-party logistics services. Robert Bianco, most recently vice president of operations for Menlo Logistics, is president of the logistics division. Vector SCM, a division of Menlo Worldwide and a joint venture with General Motors that manages GM's worldwide distribution system, will be a model for developing other "fourth-party" logistics business. Its current president, Gary Kowalski, will head the division. Menlo Worldwide Technologies will be a top-tier provider of information technology, supply chain engineering skills and consulting services. Senior Vice President Ed Feitzinger, most recently vice president of technology and engineering for Menlo Logistics, will head it. Williford announced that John Rocheleau, most recently vice president, controller and treasurer for Menlo Logistics would join Menlo Worldwide as vice president of finance. Conference Call CNF will host a conference call for shareholders and the investing community to discuss this announcement at 11:00 a.m. Eastern time (8:00 a.m. Pacific) today. The call can be accessed by dialing 888/276-0009 and is expected to last approximately one hour. Callers are requested to dial in at least five minutes before the start of the call. The call will also be available through a live web cast at www.menloworldwide.com and in the investor relations Investor relations The process by which the corporation communicates with its investors. section of the CNF web site at www.cnf.com. An audio replay will be available for 48 hours following the call at 800/475-6701, access code 612098. The replay will also be available for 48 hours on demand at the web sites providing access to the live call. CNF (NYSE:CNF) is a $6 billion management company of global supply chain services with businesses in regional trucking, air freight, ocean freight, customs brokerage, global logistics management and trailer manufacturing. Forward Looking Statement Certain statements in this news release constitute "forward-looking statements" and are subject to a number of risks and uncertainties, and should not be relied upon as predictions of future events. All statements other than statements of historical fact are forward-looking statements, including any projections of earnings, revenues, tonnage, volumes, income or other financial or operating items, any statements of the plans, strategies, expectations or objectives of CNF, Menlo Worldwide or management for future operations or other future items, any statements concerning proposed new products or services, any statements regarding future economic conditions or performance, any statements of estimates or belief and any statements or assumptions underlying the foregoing. Such forward-looking statements are necessarily dependent on assumptions, data and methods that may be incorrect or imprecise and there can be no assurance that they will be realized. The following factors, among others and in addition to the matters discussed elsewhere in this news release and in CNF's 2000 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. and other reports and documents filed by CNF with the Securities and Exchange Commission, could cause actual results and other matters to differ materially from those discussed in such forward-looking statements: changes in general business and economic conditions; the creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. of Menlo Worldwide's customers and their ability to pay for services rendered; increasing competition and pricing pressure; changes in fuel prices; labor matters; enforcement of and changes in governmental regulations; and CNF's ability to fund Menlo Worldwide's ongoing capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . As a result of the foregoing, no assurance can be given as to future financial position or results of operations. Note: Photos are available at URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : Menlo Worldwide Logo: http://www.businesswire.com/cgi-bin/photo.cgi?pw.120501/bb4 John H. Williford: http://www.businesswire.com/cgi-bin/photo.cgi?pw.120501/bb4a |
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