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TNT FREIGHTWAYS REPORTS 136.8 PERCENT INCREASE IN FIRST-QUARTER EARNINGS ON 16.8 PERCENT REVENUE GROWTH

 TNT FREIGHTWAYS REPORTS 136.8 PERCENT INCREASE IN FIRST-QUARTER
 EARNINGS ON 16.8 PERCENT REVENUE GROWTH
 ROSEMONT, Ill., April 20 /PRNewswire/ -- TNT Freightways Corp. (NASDAQ: TNTF) today reported net income of $2,695,000 for the first quarter ended March 28, 1992, compared to $1,138,000 last year, an increase of 136.8 percent.
 Revenue increased 16.6 percent to $181,003,000 compared to $155,271,000. Earnings per share of 16 cents were on 17.3 million average shares outstanding, reflecting the company's initial public offering of stock on Feb. 12, 1992. Last year, when the company was private, it earned 7 cents per share in the comparable quarter on 16.8 million average shares outstanding. (TNT Freightways recently changed from a June to a December fiscal year in keeping with the trucking industry's business cycle.) Income from operations increased 61.2 percent compared to the same period last year with LTL shipment count increasing 13.2 percent and revenue per LTL shipment increasing 3.1 percent.
 The following table sets forth revenue and operating ratios for the individual trucking subsidiaries:
 TNT FREIGHTWAYS CORP.
 Quarters ended 3/28/92 3/30/91
 Company (geographic Operating Operating
 region) Revenue Ratios(A) Revenue Ratios(A)
 (Pct.) (Pct.)
 TNT Holland (Midwest) $78,913,000 92.7 $64,298,000 94.3
 TNT Red Star (Northeast) 42,613,000 100.9 40,842,000 98.6
 TNT Reddaway (West Coast) 17,197,000 87.8 13,780,000 90.7
 TNT Bestway (Southwest
 and Texas) 22,586,000 101.8 19,584,000 98.9
 TNT United (Rockies,
 Northwest) 6,225,000 92.4 4,851,000 97.3
 TNT Dugan (Plains) 6,092,000 93.9 5,475,000 95.5
 (A) -- Operating ratio as defined by Interstate Commerce Commission is direct operating costs as a percentage of revenue.
 The company's strongest performance has been at TNT Holland, TNT Reddaway, TNT United, and TNT Dugan due to increased market penetration and an improving economy in these operating regions. TNT Red Star's results were negatively impacted by the soft economy in the Northeast, limiting its revenue growth. At TNT Bestway, despite a 15 percent revenue growth, results were eroded by continued fierce competition which resulted in lower prices.
 Excluding TNT Red Star, LTL revenue was up 21.6 percent, LTL shipment count was up 16.8 percent and revenue per LTL shipment was up 4.1 percent.
 At Auto Warehousing, the company's automobile port processing and refurbishing business, operating income increased marginally on a 6 percent increase in revenue, despite a lower volume of import cars for processing.
 Cam Carruth, president and CEO of TNT Freightways, said that a number of factors contributed to revenue and earnings growth in the quarter. "Despite a slow recovery in the economy, TNT achieved increased market share. Also, revenue growth was positively impacted by an approximate 4 percent increase in tariff rates in January 1992." Carruth went on to say, "The full effect of this rate increase on profits, which has been generally accepted by customers, will be offset to some extent by increases in contractual labor costs as of April. In addition, last year's quarter reflected gulf war-induced fuel costs. However, at this point we are sufficiently encouraged by the recovery that we have committed to purchase new equipment to further expand one of the youngest fleets in the industry."
 TNT Freightways operates a group of less-than-truckload general commodities motor carriers in the United States. These regional trucking subsidiaries provide overnight and second-day delivery service throughout the United States and into Canada. The company, through TNT Auto Warehousing, also operates an automobile port processing and refurbishing business.
 Revenue and earnings (unaudited) for the company's first quarter (reflecting the change in fiscal year from June to December) with comparable figures for the first quarter 1991 are as follows:
 TNT FREIGHTWAYS CORP.
 13 weeks ended 3/28/92 3/30/91
 Revenue $181,003,000 $155,271,000
 Income from operations(A) 5,033,000 3,122,000
 Other (expense) net (133,000) (304,000)
 Income before income tax 4,900,000 2,818,000
 Provision for income tax 2,205,000 1,680,000
 Net income 2,695,000 1,138,000
 Net income per share $0.16 $0.07
 Average shares outstanding 17,333,653 16,800,000
 (A) -- After deduction for amortization of intangibles of $2,058,000 in 1992 and $2,244,000 in 1991.
 The company operates on a 52/53-week fiscal year ended on the Saturday closest to Dec. 31.
 As this is TNT Freightways' first quarterly report as a publicly held company, the following summary financial information is provided on previously unavailable quarterly results for calendar year 1991.
 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
 Revenue $155,271,000 $168,750,000 $174,510,000 $176,135,000
 Income from
 operations(A) 3,122,000 11,322,000 9,537,000 3,582,000
 Net income 1,138,000 6,436,000 5,676,000 1,622,000
 Net income
 per share $0.07 $0.38 $0.34 $0.10
 Number of shares
 outstanding 16,800,000 16,800,000 16,800,000 16,800,000
 After deduction
 of amort. of
 intangibles of $2,244,000 $2,213,000 $2,055,000 $2,065,000
 -0- 4/20/92
 /CONTACT: Chris Ellis of TNT Freightways, 708-696-0200/
 (TNTF) CO: TNT Freightways Corp. ST: Illinois IN: TRN SU: ERN


CK -- NY031 -- 9968 04/20/92 10:50 EDT
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Date:Apr 20, 1992
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