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CONSOLIDATED FREIGHTWAYS REPORTS IMPROVED FIRST QUARTER EARNINGS

 PALO ALTO, Calif., April 20 /PRNewswire/ -- Consolidated Freightways Inc. (NYSE: CNF) today reported substantially improved first quarter net income of $8.3 million, compared with a loss of $819,000 in the same period a year ago.
 Net income for common shareholders also improved to $3.5 million, or 10 cents per share (nine cents per share fully diluted). This compares with a net loss of $3.3 million, or 10 cents per share, in the same period a year ago, excluding a $70 million ($1.99 per share) cumulative adjustment relating to the 1992 adoption of Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Post-Retirement Benefits Other than Pensions."
 Operating income in the first quarter was $21.4 million, a 92-percent improvement compared with $11.1 million earned in the same period a year ago.
 Revenues in the quarter totaled $993.0 million and were marginally higher than 1992 first quarter revenues of $990.6 million, with one less working day in the quarter for 1993.
 "I am pleased to announce that the company is once again profitable for all shareholders," said Donald E. Moffitt, president and chief executive officer. "Substantial effort has been given to achieving this turnaround, and the employees of all the CF family of companies are to be commended."
 Moffitt said that the 92-percent improvement in operating income is an encouraging start for 1993, and that overall cost controls continue to be effective. All of CF's operating companies were adversely affected by the 1993 winter storms. "However, our employees did a very good job in working through the difficult and costly severe storms," Moffitt said.
 Emery Worldwide, the company's air freight component, reported a first quarter operating loss of $4.7 million, a $12.7-million improvement from the operating loss of $17.4 million in the same quarter a year ago. Revenues were $284.9 million, up 3 percent from $277.1 million in the 1992 first quarter.
 Moffitt noted that Emery has achieved six consecutive quarters of improved year-to-year operating results and has maintained the momentum from its profitable fourth quarter, including a profitable March.
 "Emery's revenue increase, during what is traditionally the slowest quarter for air freight, is solid evidence that it has earned the respect of the marketplace and is well-positioned for profits in future quarters," Moffitt said. "Attention at Emery is focused on cost controls, maintaining service and improving yields and revenues, particularly in international markets."
 Further evidence of Emery's progress is in its shipment count, which exceeded 25,000 per day in the quarter for the first time since the company began focusing on parcels, packages and heavy freight shipments 5 lbs. and above and removed itself from the highly competitive overnight envelope market.
 Con-Way Transportation Services, the company's regional carrier and intermodal group, had record quarterly operating income of $15.9 million, up 19 percent from $13.4 million operating income in the 1992 first quarter. Revenues of $188.0 million increased 8 percent from $173.9 million in the 1992 first quarter.
 "The Con-Ways were the third most profitable company in the trucking industry in 1992, and the moo shareholders."
 Revenues at CF MotorFreight, the company's nationwide long-haul carrier, declined 4 percent due primarily to continued weakness in the long-haul industry and continued pricing pressures. Revenues in the quarter were $520.2 million, compared with revenues of $539.7 million in the first quarter a year ago.
 CF MotorFreight was also the component most severely affected by the bad weather in the quarter.
 CF MotorFreight operating income of $10.1 million in the first quarter declined from operating income of $15.1 million in the same period a year ago.
 Price discounting remains a concern, Moffitt said, adding that "While revenue per hundredweight increased in the quarter, our cost of doing business was up even more."
 He noted that CF MotorFreight is responding aggressively with new marketing strategies focused on consistent transit times and emphasis on profitable accounts rather than volume business.
 "The motor carrier is paying diligent attention to cost controls to alleviate the impact of union labor wage increases of more than $3 million a month that went into effect on April 1," Moffitt said. "Cost control is being emphasized to adjust the infrastructure of the company to be more responsive to customers and improve utilization of the system."
 Higher-rated, less-than-truckload tonnage for CF MotorFreight declined 4.1 percent while total tonnage was down 5.3 percent. Regional LTL traffic for the Con-Way group rose 7.7 percent while total CTS tonnage increased 16.9 percent.
 Consolidated Freightways Inc. is a diversified transportation company with businesses in long-haul and regional trucking, air freight, intermodal rail and ocean freight shipping, customs brokerage and logistics management services.
 CONSOLIDATED FREIGHTWAYS INC. AND SUBSIDIARIES
 CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
 (Dollars in thousands except per-share amounts)
 Three Months Ended
 March 31,
 1993 1992(A)
 REVENUES
 CF MotorFreight $ 520,162 $ 539,653
 Con-way Transportation Services 187,967 173,894
 Emery Worldwide 284,852 277,080
 Total $ 992,981 $ 990,627
 OPERATING INCOME (LOSS)
 CF MotorFreight $ 10,117 $ 15,114
 Con-Way Transportation Services 15,910 13,388
 Emery Worldwide (4,677) (17,409)
 Total 21,350 11,093
 OTHER EXPENSE, NET (5,869) (12,745)
 Income (loss) before income taxes
 (benefits) and cumulative effect
 of accounting change 15,481 (1,652)
 Income taxes (benefits) 7,213 (833)
 NET INCOME (LOSS) BEFORE CUMULATIVE
 EFFECT OF ACCOUNTING CHARGE 8,268 (819)
 Cumulative effect of change in method
 of accounting for post-retirement
 benefits, net of related income tax
 benefits of $42,899 --- 69,991
 NET INCOME (Loss) 8,268 (70,810)
 Preferred Stock Dividends 4,749 2,530
 Net Income (Loss) Applicable to
 Common Shareholders $ 3,519 $ (73,340)
 Average Common Shares
 Outstanding 35,360,163 35,130,580
 Primary Earnings (Loss) Per Common Share:
 Net income (loss) before cumulative
 effect of accounting change $ 0.10 $ (0.10)
 Cumulative effect of accounting
 change --- (1.99)
 Net Income (Loss) $ 0.10 $ (2.09)
 Fully Diluted Earnings (Loss) Per Common Share:
 Net income (loss) before cumulative
 effect of accounting change $ 0.09 $ (0.10)
 Cumulative effect of accounting
 change --- (1.99)
 Net Income (Loss) $ 0.09 (2.09)
 (A) Restated for the prospective adoption, effective Jan. 1, 1992, of SFAS No. 109 and SFAS No. 106 in the second and fourth quarters respectively.
 -0- 4/20/93
 /CONTACT: J.R. Allen of Consolidated Freightways, 415-494-2900/
 (CNF)


CO: Consolidated Freightways Inc.; Emery Worldwide; Con-Way
 Transportation Services; CF MotorFreight ST: California IN: TRN SU: ERN


SG-GT -- SJ008 -- 7813 04/20/93 09:00 EDT
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Date:Apr 20, 1993
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