CNF Transportation Inc. reports record first quarter earnings.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)--April 16, 1997--CNF Transportation Inc. today reported record first quarter net income for common shareholders of $20.0 million, or 43 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. (40 cents fully diluted) compared with net income of $11.5 million, or 26 cents per share (24 cents fully diluted) in the first quarter of 1996. 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 first quarter was $50.4 million, up 43 percent, and revenues were $942.6 million, up 11 percent, each a record for the quarter. All numbers are from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and 1996 results have been restated to reflect the Dec. 2, 1996 spin off to shareholders of CF MotorFreight, the company's former long-haul less-than-truckload carrier. The company, formerly Consolidated Freightways Consolidated Freight was the 3rd biggest trucking company in the US. In the 1930s they started their own truck manufacturing operation, Freightliner, now part of DaimlerChrysler. , Inc., has changed its name to 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 Inc. (subject to shareholder approval in April) and includes 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. , Con-Way Transportation Services, Menlo Logistics, VantageParts and Road Systems. "The record earnings and revenue for the quarter reflect the strength of the economy, both 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 around the world, a stable pricing environment in trucking and air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f , and growing efficiencies throughout our operations," said Donald E. Moffitt, chairman, president and chief executive officer. "We have succeeded in putting together market leading companies that operate in the premium service end of their respective industry. More and more, customers are recognizing the CNF group of companies for their collective synergies as well as their individual strengths in trucking, air freight and logistics." Moffitt said the company has seen a reduction in the excessively high fuel prices of a year ago although prices remain high. "However, we are doing a better job of recovering increases through index fees that share these higher costs with our customers," he said. The improved earnings also reflect a reduced tax rate and less severe winter weather as compared to 1996. Concerning the spin off of CF MotorFreight, Moffitt noted that shareholders already are benefitting from the strategy to separate CNF from its former subsidiary, allowing both companies to increase value for shareholders. "From the beginning, our strategy was to release the potential of two great organizations. Now, even at this early stage, it is clear that shareholders and employees of both companies are benefitting," Moffitt said. "Total value of the company's shares on the market have increased 100 percent since the low during the month prior to the spin off announcement last August. Price per share of the combined companies has increased 90 percent." CON-WAY TRANSPORTATION SERVICES 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 first quarter operating income of $28.5 million, up 40 percent from the same quarter a year ago. Revenues were $334.5 million, up 11 percent. The operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: for the regional carriers was 90.2 percent in the first quarter. "The Con-Way regional carriers have increased their efficiencies as geographic expansions in the West and Northeast mature. This allows for increased load factor, better utilization of revenue equipment and terminal facilities," Moffitt said. "Con-Way is also benefitting from some recent industry capacity reduction and has been successful in absorbing freight at prices that match the premium service provided by the Con-Way group." Total Con-Way Transportation Services tonnage increased 3.4 percent in the first quarter while LTL LTL - Linear Temporal Logic traffic rose 6.2 percent. EMERY WORLDWIDE Emery Worldwide reported first quarter operating income of $18.5 million, up 61 percent from the $11.5 million earned a year ago in the same quarter. Revenues were $508.6 million, up 14 percent. Renewal of the U.S. air cargo air cargo: see aviation. excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. was again delayed by Congress. This year it became effective in the second week of March, costing Emery about $900,000 versus a year ago when the tax was not in effect. "Emery is growing, once again, in double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. both domestically and internationally, where business in 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. and Europe is showing particularly good growth in revenues and profits," said Moffitt. "Emery is also doing a better job of selectively reviewing customer accounts to assure profitability and moving its pricing from average costs of doing business to actual costs." In response to its growth in international business, Emery has converted agent operations into wholly owned operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon in eight countries over the past two years, increasing sales and providing improved customer service through access to Emery's worldwide transportation and technology system. In the first quarter, North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. revenue was up 12.3 percent and international revenue was up 20.4 percent. North American tonnage grew 9.2 percent while international tonnage grew 11.0 percent. OTHER OPERATIONS The operations of Menlo Logistics, Road Systems and VantageParts are reported as other operations of the company. For the first quarter, those operations had operating income of $3.4 million on revenues of $99.6 million. This compares with operating income of $3.3 million on revenues of $99.4 million in the same period a year ago. For Menlo Logistics, operating income was $3.2 million, up 53 percent, compared with operating income of $2.1 million in the same quarter a year ago. Revenue was $89.8 million, up 10 percent compared with revenue of $81.9 million a year ago. The increase in operating income compared to the smaller growth in revenues represents substantiation of Menlo's strategy to expand emphasis on dedicated 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 , where the company's technology advantage and management skills are better suited, Moffitt noted. CNF Transportation is a diversified holding company with businesses in regional trucking, domestic and international air freight, global logistics management, trailer manufacturing and wholesale truck parts sales. -0-
CNF TRANSPORTATION INC.
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(Dollars in thousands except per share amounts)
Three Months Ended
March 31
1997 1996
REVENUES
Con-Way Transportation Services $ 334,458 $ 301,841
Emery Worldwide 508,552 446,599
Other 99,618 99,433
------- -------
$ 942,628 $ 847,873
OPERATING INCOME
Con-Way Transportation Services $ 28,477 $ 20,384
Emery Worldwide 18,507 11,500
Other 3,383 3,330
------ ------
$ 50,367 $ 35,214
OTHER EXPENSE, NET 10,195 9,531
Income from continuing operations
before income taxes 40,172 25,683
Income taxes 18,228 12,020
Net income from continuing operations 21,944 13,663
Loss from discontinued operations
net of income tax benefits - (13,383)
Preferred stock dividends 1,939 2,134
NET INCOME (LOSS) APPLICABLE TO
COMMON SHAREHOLDERS $ 20,005 $ (1,854)
Average Common Shares Outstanding
Primary (1) 46,465,385 44,925,741
Fully Diluted (2) 50,933,359 49,137,710
PRIMARY EARNINGS (LOSS)
PER COMMON SHARE:
Continuing Operations $ 0.43 $ 0.26
Discontinued Operations - (0.29)
Total $ 0.43 $ (0.03)
FULLY DILUTED EARNINGS (LOSS)
PER COMMON SHARE:
Continuing Operations $ 0.40 $ 0.24
Discontinued Operations - (0.27)
Total $ 0.40 $ (0.03)
(1) Includes the dilutive effect of stock options.
(2) Includes the dilutive effect of stock options and Series B
(TASP) preferred shares.
CONTACT: CNF Transportation, Palo Alto James R. Allen General James R. Allen (born 1925) was commander in chief of the Military Airlift Command, with headquarters at Scott Air Force Base, Illinois, and the seventh Superintendent of the United States Air Force Academy. , 415/494-2900 |
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