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CONSOLIDATED FREIGHTWAYS INC. ANNOUNCES FIRST QUARTER RESULTS

 CONSOLIDATED FREIGHTWAYS INC. ANNOUNCES FIRST QUARTER RESULTS
 PALO ALTO, Calif., April 22 /PRNewswire/ -- Consolidated Freightways Inc. (NYSE: CNF) today reported a net loss of $3.2 million, or 9 cents per share, for common shareholders. The results compare with a net loss for common shareholders of $14.3 million, or 41 cents per share, in the same quarter a year ago.
 Revenues for the first quarter were $990.6 million, down 5.3 percent from year ago revenues of $1.05 billion. Operating income for the quarter was $13.3 million, compared to a 1991 first quarter operating loss of $1.5 million. Net income before preferred dividends was $259,000.
 Preferred dividends in the first quarter were $3.5 million. The preferred dividends for the remainder of the year will increase to approximately $6 million in each quarter, relating to the successful offering of 6.9 million depositary shares of convertible preferred stock. Most of the $118 million in proceeds from the offering will be used to reduce corporate debt.
 Donald E. Moffitt, president and chief executive officer, said the narrowed loss reflected improved trucking profits and marginal improvement in air freight operations, both positive trends which continued from the fourth quarter.
 The company's air freight component, Emery Worldwide, had revenues of $277.1 million, down 27.5 percent from the previous year quarter. The lower revenues in the quarter are partially the result of a restructuring in the second quarter of 1991 that focused Emery on commercial air cargo shipments, reduced revenues from the U.S. Postal Service, and the worldwide recession.
 Emery reported a first quarter loss of $16.7 million, a $1.7 million improvement from the $18.4 million loss a year ago. "While we are not yet satisfied with Emery's results, the air freight component reduced its losses despite the absence of $10 million in operating profits from Gulf War charters and increased U.S. Postal Service business in the first quarter of 1991."
 Moffitt noted that Emery continues to refine its costs while adjusting operations for service improvements through better utilization of current resources. Emery recently upgraded its premium next-day service, expanding before-noon delivery capability in 26 major U.S. metropolitan areas.
 CF Motor Freight, the company's North American long-haul trucking subsidiary, had first quarter operating income of $15.9 million, up 67.7 percent from the $9.5 million earned a year ago. Revenues rose 3.9 percent to $539.7 million from last year's $519.4 million.
 Moffitt attributed the improvements to small tonnage gains that paralleled a weak recovery in the economy. Margins improved as well, principally from a rate increase implemented in January and from cost reductions implemented in the latter half of 1991.
 "CF Motor Freight has continued to adjust its cost structure in response to the recession," Moffitt said. "With the weak economy we run a real danger of price deterioration. Price stabilization is necessary if we are to achieve satisfactory earnings for the remainder of the year."
 Con-Way Transportation Services, the company's regional carrier and intermodal group, had operating income of $14.1 million, up 90 percent from the $7.4 million earned in the year-ago period. Revenues of $173.9 million increased 20.1 percent from $144.7 million last year.
 Moffitt said the growth was primarily the result of improved market penetration and success of the CTS national accounts marketing program.
 Con-Way Southwest Express, which began operations in November 1989, became profitable in the quarter, Moffitt said. He noted that all four of the company's regional carriers were operating in the black. "We are pleased that our regional operations have resumed their more traditional growth and profit margins."
 Higher-rated less-than-truckload tonnage for CF Motor Freight rose 3.8 percent while total tonnage was up 2.7 percent. Regional LTL traffic for the Con-Way group was up 19.7 percent while total CTS tonnage rose 20 percent.
 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 INC. AND SUBSIDIARIES
 Condensed Statements of Consolidated Operations
 (Dollars in thousands except per share amounts)
 Three Months Ended March 31,
 1992 1991
 Revenues
 CF Motor Freight $ 539,653 $ 519,426
 Con-Way Transportation Services 173,894 144,739
 Emery Worldwide 277,080 382,318
 Total Revenues $ 990,627 $ 1,046,483
 Operating Income (Loss)
 CF Motor Freight $ 15,887 $ 9,474
 Con-Way Transportation Services 14,055 7,397
 Emery Worldwide (16,689) (18,416)
 Total Operating Income (Loss) 13,253 (1,545)
 Other Expense, Net (12,745) (10,823)
 Income (Loss) Before Income Taxes
 (Benefits) 508 (12,368)
 Income Taxes (Benefits) 249 (1,275)
 Net Income (Loss) 259 (11,093)
 Preferred Stock Dividends 3,494 3,181
 Net Loss Applicable to Common Stock $ (3,235) $ (14,274)
 Net Loss Per Common Share $ (.09) $ (.41)
 Average common shares outstanding 35,130,580 35,003,994
 -0- 4/22/92
 /CONTACT: J. R. Allen of Consolidated Freightways, 415-494-2900/
 (CNF) CO: Consolidated Freightways Inc. ST: California IN: TRN SU: ERN


DG -- SJ003 -- 1075 04/22/92 09:10 EDT
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Date:Apr 22, 1992
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