CNF Transportation Inc. Net Income Climbs 40 Percent in Second Quarter.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)--July 20, 1998--CNF Transportation Inc. today reported record earnings for the second quarter ended June 30. Net income for common shareholders increased 40 percent to $39.3 million, or 83 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. (73 cents diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ). That compares with net income of $28.0 million, or 61 cents per share (55 cents diluted) in the same quarter a year ago. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the second quarter was also a record, up 26 percent to $84.0 million while revenue increased 20 percent to $1.20 billion. Net income for common shareholders for the first six months of the year was up 17 percent to $56.2 million, or $1.18 per share ($1.06 diluted), compared with net income for common shareholders of $48.0 million, or $1.05 per share (95 cents diluted) in the first six months of 1997. Operating income improved 10 percent in the first six months of the year to $128.8 million compared with $117.2 million for the same period a year ago. "Our record earnings for the quarter are the result of another industry-leading performance by Con-Way Transportation Services, significant improvement in both profits and efficiencies at 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. , continued growth in new business by Menlo Logistics and our first profitable quarter for the Priority Mail contract," said Gregory L. Quesnel, president and chief executive officer. "Our strategy of building market leading companies that customers increasingly recognize for their value as premium service providers continues to work for our shareholders," Quesnel said. "While revenue growth in our businesses was substantial, I am pleased to report that our profit improvement was even better." Con-Way Transportation Services, the company's regional carrier and truckload truck·load n. The quantity that a truck can hold. truckload n → camión m lleno operations, had second quarter operating income of $54.0 million, up 35 percent from the same quarter a year ago. Revenues were $424.6 million, up 16 percent. The operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: for the regional carrier group was 86.2 percent. "Con-Way's excellent financial results come from its successful strategy of growing its core regional next-day and second-day less-than-truckload operations while extending the mix of services provided to customers through joint regional operations," said Quesnel. "Con-Way customers are recognizing in growing numbers the value of the consistently high level of premium service provided by more than 16,000 dedicated CTS (1) (Clear To Send) The RS-232 signal sent from the receiving station to the transmitting station that indicates it is ready to accept data. Contrast with RTS. (2) (Common Type System) The data typing used in . employees." CTS regional carrier total tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. increased 6.5 percent and LTL LTL - Linear Temporal Logic tonnage increased 6.8 percent. Emery Worldwide reported second quarter operating income of $22.2 million, up 1 percent from the year-ago quarter. Revenues were up 1.5 percent to $526.7 million. "Emery emery: see corundum. emery Granular rock consisting of a mixture of the mineral corundum (aluminum oxide, Al2O3) and iron oxides such as magnetite (Fe3O4) or hematite (Fe2O3). has faced many challenges since January. Through extensive cost controls and increased yields, our air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f operations have achieved substantial improvement since the first quarter," Quesnel said. "Business in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Asia declined in the second quarter while there was improvement in Europe and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. ." In the second quarter, Emery's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. revenue was essentially flat and international revenue was up 2.6 percent. North American air freight tonnage declined 6.5 percent while international tonnage grew 3.5 percent. Menlo Logistics, Road Systems, VantageParts and the Priority Mail contract are reported as Other operations of the company. For the second quarter, those operations had operating income of $7.8 million, up 66 percent from the same period a year ago. Revenues were up substantially to $248.3 million, reflecting revenue from the Priority Mail contract and new business added by Menloed second quarter operating income of $5.0 mill15 billion in new business that will flow to tht, and that the system of 10 Priority Mail Proce was 44.5 percent. 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 Transportation is a diversified holding company with businesses in regional and trans-continental trucking, domestic and international air freight, global logistics management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet , trailer manufacturing and wholesale truck part sales. Note to Editors: Certain statements in this news release, including statements regarding anticipated earnings, constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " and are subject to a number of risks and uncertainties, and should not be relied upon as predictions of future events. The factors discussed above and in Item 7 of the company's 1997 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. as well as other filings with the Securities and Exchange Commission, could cause actual results and other matters to differ materially from those in such forward-looking statements. As a result, no assurances can be given as to future results of operations or financial condition. -0-
CNF TRANSPORTATION INC.
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
(Dollars in thousands except per share amounts)
Three Months Ended
June 30
1998 1997
---------- ----------
REVENUES
Con-Way Transportation Services $ 424,618 $ 365,405
Emery Worldwide 526,726 518,950
Other 248,310 118,208
------------ ------------
$1,199,654 $ 1,002,563
============ ============
OPERATING INCOME
Con-Way Transportation
Services $ 53,990 $ 40,081
Emery Worldwide 22,213 22,101
Other 7,800 4,685
------------ ------------
84,003 66,867
OTHER EXPENSE, NET 9,470 11,840
------------ ------------
Income before income taxes 74,533 55,027
Income taxes 33,167 25,038
------------ ------------
Net income 41,366 29,989
------------ ------------
Preferred stock dividends 2,040 1,971
------------ ------------
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS $ 39,326 $ 28,018
============ ============
Average Common Shares Outstanding (1)
Basic 47,612,373 46,001,492
Diluted (2) 55,506,056 52,148,304
EARNINGS PER COMMON SHARE (1)
BASIC $ 0.83 $ 0.61
============ ============
DILUTED $ 0.73 $ 0.55
============ ============
(1) The prior year earnings per share have been restated for
adoption of SFAS No. 128, Earnings Per Share.
(2) Includes the dilutive effect of stock options, Series B
(TASP) preferren Services $ 818,223 $ 699,863
Emery Worldwide 1,048,359 1,027,502
Other 422,938 Emery Worldwide 29,726
128,808 117,234
OTHER EXPENSE, NET 20,198 22,035 60,279
51--
------ ------------
NET INCOME AVAILABLE T 47,561,179 45,614
============ ============
stated for
adoption of SFAS No. 128, Earnings P CNF TRANSPORTATION INC.
97
---------- 569,582 532,267
' EQUITY
Current liabilities $ 857,176 $ 806,138
Long-term debt and guarantees 467,680 473,488
Other long-term liabilities
and deferred421,496
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