CNF Transportation Reports Record First Quarter Earnings; Net Income Up Substantially.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 19, 1999-- 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. today reported record first quarter net income for common shareholders of $40.3 million, or 84 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. (74 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 $16.9 million, or 36 cents per share (33 cents diluted) in the first quarter of 1998. Net income for common shareholders in the first quarter includes a non-recurring gain equal to 16 cents per diluted share for settlement of a lawsuit lawsuit: see procedure; tort. . Excluding the legal settlement, earnings per diluted share for common shareholders was 58 cents. First quarter 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. , including the non-recurring gain, was $82.6 million, up 84 percent, compared with $44.8 million in the same quarter a year ago. Revenue was a record for a first quarter at $1.26 billion, up 15 percent, and the effective tax rate was 43.5 percent. "First quarter results were a record without the special gain related to a legal settlement, with both revenues and operating income growing substantially," said Gregory L. Quesnel, president and chief executive officer. "Con-Way Transportation Services and Menlo Logistics each achieved notable growth in revenue and profits while 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 its effort to reposition itself as a premium service carrier. Postal operations were profitable for the third consecutive quarter." Con-Way Transportation Services had first quarter operating income of $53.9 million, up 7 percent from the same quarter a year ago in which it benefited from shippers who diverted di·vert v. di·vert·ed, di·vert·ing, di·verts v.tr. 1. To turn aside from a course or direction: Traffic was diverted around the scene of the accident. 2. freight due to concerns about a possible strike at national carriers. Revenues were $433.4 million, up 10 percent. "Con-Way was affected by increased costs due to a harsh winter across most of the nation and start-up Start-up The earliest stage of a new business venture. expenses related to its new multi-client warehousing and logistics business, Con-Way Integrated Services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. ," said Quesnel. "Yet it recorded the second-best quarter in its history because of its emphasis on premium service, productivity and cost controls. Con-Way's results are a testament to its pricing discipline." Con-Way regional carrier 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 4.3 percent in the first quarter while LTL LTL - Linear Temporal Logic traffic rose 5.0 percent. Emery Worldwide reported first quarter operating income of $3.6 million, down 53 percent from the $7.5 million earned a year ago in the same quarter. Revenues were $529.4 million, up 1 percent. "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 made progress in repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. itself as a premium service carrier, as has been demonstrated with its improved service and increase in yields. However, air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f revenue and tonnage declined both domestically and internationally. Emery's affiliated businesses in expedited freight services, ocean freight and customs brokerage continue to do well," said Quesnel. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. air freight revenue decreased 6.6 percent in the first quarter and international air freight revenue decreased 3.3 percent. North American air freight tonnage decreased 10 percent while international tonnage decreased 4 percent in the first quarter. Menlo Logistics reported first quarter operating income of $4.6 million, up 20 percent, on revenue of $160.6 million, which was up 34 percent compared to the first quarter of 1998. "New business acquired in 1998 is now coming on line and producing positive results for Menlo," said Quesnel. "Menlo's ability to offer astute as·tute adj. Having or showing shrewdness and discernment, especially with respect to one's own concerns. See Synonyms at shrewd. [Latin ast strategic analysis and creative ideas across the entire supply chain has found acceptance in the marketplace." The "Other" operations consist primarily of the results of the Priority Mail contract, and include Road Systems and VantageParts. First quarter operating income of $20.5 million, which includes a $16.5 million gain for the legal settlement, compared with a loss of $17.0 million in the same period a year ago due to start up expenses related to the Priority Mail contract. The "Other" segment revenues in the first quarter of 1999 were $132.0 million compared with $54.6 million in the first quarter a year ago. The Priority Mail contract had operating income of $3.5 million in the first quarter compared with a loss of $17.6 million in the same quarter a year ago. Revenues were $118.2 million in the first quarter compared with $42.9 million a year ago. First quarter results for the Priority Mail operations reflect pricing that may be subject to retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a adjustment at a later date. The company has proposed to the Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval increased pricing that the company feels is well founded and justifiable jus·ti·fi·a·ble adj. Having sufficient grounds for justification; possible to justify: justifiable resentment. jus based upon its experience of operating the Priority Mail contract in 1998. The Postal Service is reviewing the company's proposal. Consequently, the company has recognized contract revenues in the first quarter based upon the pricing actually paid by the Postal Service. "We continue to have a constructive relationship with the Postal Service," said Quesnel. "We believe our pricing proposal is well founded and that our expected margins on the contract should ultimately be realized. The first quarter results were encouraging because they were driven by the fundamental business principles of lower than expected costs and higher than expected volume." CNF Transportation is a diversified diversified (di·verˑ·s holding company with businesses in regional 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 In communications, a code or set of codes that make up the last part of a transmitted message. See trailer label. manufacturing and wholesale truck parts sales. Certain statements in this news release, including statements regarding anticipated earnings, 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. The factors discussed above and in Item 7 of the company's 1998 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 assurance 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
March 31
----------------------------
1999 1998
------------ ------------
REVENUES
Con-Way Transportation Services $ 433,379 $ 393,605
Emery Worldwide 529,421 521,633
Menlo Logistics 160,559 120,075
Other 131,964 54,553
------------ ------------
$ 1,255,323 $ 1,089,866
============ ============
OPERATING INCOME (LOSS)
Con-Way Transportation Services $ 53,947 $ 50,501
Emery Worldwide 3,551 7,513
Menlo Logistics 4,556 3,812
Other 20,541 (17,021)
------------ ------------
82,595 44,805
OTHER EXPENSE, NET 7,734 10,728
------------ ------------
Income before income taxes 74,861 34,077
Income taxes 32,565 15,164
------------ ------------
Net income 42,296 18,913
------------ ------------
Preferred stock dividends 2,027 2,007
------------ ------------
NET INCOME AVAILABLE
TO COMMON SHAREHOLDERS $ 40,269 $ 16,906
============ ============
Average Common Shares
Outstanding
Basic 47,925,476 47,509,416
Diluted (1) 55,814,095 55,476,583
Earnings Per Common Share
Basic $ 0.84 $ 0.36
============ ============
Diluted (1) $ 0.74 $ 0.33
============ ============
(1) Includes the dilutive effect of stock options, Series B (TASP)
preferred stock and Series A "TECONS", convertible preferred
stock of subsiding trust.
CNF TRANSPORTATION INC.
CONDENSED BALANCE SHEET
(Dollars in thousands)
March 31, December 31,
1999 1998
---------- ----------
ASSETS
Current assets $1,071,800 $1,100,361
Property, plant and equipment, net 998,925 984,476
Other assets 625,184 604,575
========== ==========
Total Assets $2,695,909 $2,689,412
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 870,739 $ 900,630
Long-term debt and guarantees 461,211 467,635
Other long-term liabilities
and deferred credits 421,105 419,792
Preferred stock - Subsidiary Trust 125,000 125,000
Shareholders' equity 817,854 776,355
========== ==========
Total Liabilities and
Shareholders' Equity $2,695,909 $2,689,412
========== ==========
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