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CONSOLIDATED FREIGHTWAYS ANNOUNCES IMPROVED SECOND QUARTER RESULTS

CONSOLIDATED FREIGHTWAYS ANNOUNCES IMPROVED SECOND QUARTER RESULTS
 PALO ALTO, Calif., July 23 /PRNewswire/ -- Consolidated Freightways Inc. (NYSE: CNF) today reported significantly improved second quarter results. The company reported a net loss of $1.6 million, or four cents per share, for common shareholders, compared with a loss of $10.2 million, or 29 cents per share, in the same quarter a year ago.
 For the first six months of the year, the company reported a net loss of $3.9 million, or 11 cents per common share, compared with the loss of $24.5 million, or 70 cents per common share in the comparable six months in 1991.
 Both the year-to-date and second quarter net loss include an extraordinary charge of $7.4 million, or 21 cents per share, related to prepayment expenses for the early retirement of debt.
 An unrelated $7.6 million tax credit recorded in the second quarter is also included in year-to-date results.
 Also in the second quarter, the company prospectively adopted effective Jan. 1, 1992, the Financial Accounting Standards Board Statement No. 109, "Accounting for Income Taxes." Accordingly, the company restated its first quarter net loss of $3.2 million or 9 cents a share to $2.3 million or 7 cents per common share. The FASB requires adoption of this statement no later than 1993.
 Operating income in the second quarter was $18.4 million, compared to 1991 second quarter operating income of $2.6 million. Revenues in the second quarter were $1.0 billion, down 1 percent from revenues of $1.01 billion a year ago.
 Operating income in the first half of 1992 was $31.6 million, up substantially from operating income of $1.0 million in the same period a year ago. Revenues for the first half of 1992 were $2.0 billion, down 3.2 percent from $2.06 billion in 1991.
 In the second quarter, total debt was reduced by $121.6 million to $548.2 million, primarily with proceeds raised from a successful offering of depositary shares of convertible preferred stock. In the past 12 months, the company has retired $136.9 million in debt and lowered its debt-to-capital ratio to 45 percent from 55 percent. As of June 30, the company had more than $315 million in cash and equivalents.
 Donald E. Moffitt, president and chief executive officer, said the company has posted financial improvement for three quarters in implementing its strategic financial plan of substantially reducing debt while maintaining positive cash flow and a large cash reserve.
 "While we are not satisfied with the pace of our financial progress, we are in fact improving faster than our nation's economy is recovering from this prolonged recession," he said. "We anticipate little if any improvement in the economy for the remainder of the year. Nevertheless, our expectations are that the second half of the year will provide us with better opportunities for profitability."
 Emery Worldwide, the company's air freight unit, reduced its losses by $1.7 million in the first quarter and by $17.7 million in the second quarter compared with results a year ago. Moffitt noted the company was pleased that Emery was entering the last half of the year with these positive trends.
 In the second quarter, Emery Worldwide had an operating loss of $10.5 million compared with a loss of $28.2 million in the same period a year ago, despite a reduction in revenue and related profit from U.S. Postal Service contracts.
 Air freight revenues were $276.1 million, down 14.1 percent from revenues of $321.4 million in the 1991 second quarter. The anticipated revenue decline follows marketing and operational changes in last year's second quarter that re-focused the company on transportation of parcels, packages and heavier shipments weighing more than 10 pounds for business and industrial customers.
 "Emery has made sustainable progress in rebuilding customer confidence," Moffitt said. "It has also positioned itself as a stable, customer-oriented commercial air freight carrier providing consistently good service."
 CF MotorFreight, the company's North American long-haul trucking subsidiary, had second quarter operating income of $13.4 million, down 28.3 percent from the $18.7 million earned in the same period a year ago. Revenues in the quarter were $545.1 million, up 2.2 percent compared to $533.5 million last year.
 Moffitt said competitive pressures in the long-haul industry continued in the second quarter, while fuel costs increased and wages increased under union contracts.
 "Profits from the slight increases in volume were impacted by the weak economic recovery and industry-wide over-capacity," he said.
 Total tonnage in the quarter for CF MotorFreight increased 1.8 percent while higher-rated, less-than-truckload tonnage rose 3.5 percent.
 Con-Way Transportation Services, which operates the company's regional LTL trucking and intermodal truckload businesses, had record operating income of $15.5 million in the second quarter, up 28.0 percent from the $12.1 million earned a year ago. Second quarter Con-Way revenues were $181.6 million, an increase of 14.8 percent compared to revenues of $158.2 million in the second quarter of 1991.
 CTS operating income of $29.5 million for the first six months of the year also was a record.
 "Superior service continues to be the primary factor differentiating the Con-Ways in the regional carrier market," Moffitt said. "The commitment of Con-Way people to quality service, coupled with productivity gains, is paying off with increased market share and higher profits."
 Total tonnage in the quarter for Con-Way Transportation Services increased 13.6 percent while the higher-rated, less-than-truckload tonnage rose 15.1 percent compared to last year.
 Consolidated Freightways Inc. is a diversified transportation company with businesses in long-haul and regional next-day trucking, air freight, intermodal rail and ocean freight shipping, customs brokerage and logistics management services.
 CONSOLIDATED FREIGHTWAYS AND SUBSIDIARIES
 Condensed Statements of Consolidated Operations
 Three Months Ended June 30
 1992 1991
 Revenues
 CF MotorFreight $545,078 $533,510
 Con-Way Transportation Services 181,604 158,171
 Emery Worldwide 276,085 321,392
 Total $1,002,767 $1,013,073
 Operating Income (Loss) $13,404 $18,681
 CF MotorFreight 15,466 12,086
 Emery Worldwide (10,511) (28,199)
 Total 18,359 2,568
 Other expense, net (10,918) (11,015)
 Income (loss) before income tax
 benefits and extraordinary charge 7,441 (8,447)
 Income tax benefits (3,270) (1,411)
 Net income (loss) before
 extraordinary charge 10,711 (7,036)
 Extraordinary charge from early
 retirement of debt, net of related
 income tax benefits of $4,561 7,428 --
 Net income (loss) 3,283 (7,036)
 Preferred stock dividends 4,865 3,175
 Net loss applicable to common stock $(1,582) $(10,211)
 Average common shares outstanding 35,199,600 35,015,344
 Primary earnings (loss) per
 common share:
 Income (loss) before extraordinary
 charge $.17 $(.29)
 Extraordinary charge (.21) --
 Net loss $(.04) $(.29)
 Fully diluted earnings (loss) per
 common share:
 Income (loss) before extraordinary
 charge $.15 $(.29)
 Extraordinary charge (.19) --
 Net loss $(.04) $(.29)
 CONSOLIDATED FREIGHTWAYS AND SUBSIDIARIES
 Condensed Statements of Consolidated operations
 Six Months Ended June 30
 1992 1991
 Revenues
 CF MotorFreight $1,084,731 $1,052,936
 Con-Way Transportation Services 355,498 302,912
 Emery Worldwide 553,165 703,710
 Total $1,993,394 $2,059,556
 Operating Income (Loss)
 CF MotorFreight $29,291 $28,155
 Con-Way Transportation Services 29,521 19,483
 Emery Worldwide (27,200) (46,615)
 Total 31,612 1,023
 Other expense, net (23,663) (21,838)
 Income (loss) before income tax
 benefits and extraordinary charge 7,949 (20,815)
 Income tax benefits (2,974)(i) (2,686)
 Net income (loss) before
 extraordinary charge 10,923(i) (18,129)
 Extraordinary charge from early
 retirement of debt, net of related
 income tax benefits of $4,561 7,428 --
 Net income (loss) 3,495(i) (18,129)
 Preferred stock dividends 7,395(i) 6,356
 Net loss applicable to common stock $(3,900)(i) $(24,485)
 Average common shares outstanding 35,165,090 35,009,700
 Primary earnings (loss) per
 common share:
 Income (loss) before extraordinary
 charge $.10(i) $(.70)
 Extraordinary charge (.21) --
 Net loss $(.11)(i) $(.70)
 Fully diluted earnings (loss) per
 common share:
 Income (loss) before extraordinary
 charge $.09(i) $(.70)
 Extraordinary charge (.19) --
 Net loss $(.10)(i) $(.70)


(i) includes a first quarter favorable restatement of 2 cents per share for the retroactive adoption of SFAS No. 109 "Accounting for Income Taxes." The effect on prior periods was immaterial.
 -0- 7/23/92
 /CONTACT: J.R. Allen of Consolidated Freightways, 415-494-2900/
 (CNF) CO: Consolidated Freightways ST: California IN: TRN SU: ERN


RM -- SJ002 -- 2270 07/23/92 08:35 EDT
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Date:Jul 23, 1992
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