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CONSOLIDATED FREIGHTWAYS INC. REPORTS INCREASED INCOME

 CONSOLIDATED FREIGHTWAYS INC. REPORTS INCREASED INCOME
 PALO ALTO, Calif., Oct. 21 /PRNewswire/ -- Consolidated Freightways Inc. (NYSE: CNF) today reported third quarter net income of $3.0 million compared with a net loss of $15.6 million in the same period a year ago.
 After preferred dividends of $4.8 million, the loss for shareholders of common stock was 5 cents a share compared with a loss of 53 cents a share in the third quarter of 1991.
 Revenues in the third quarter totaled $1.04 billion, a 2.1-percent increase over revenues of $1.02 billion in the same quarter last year. Operating income in the third quarter totaled $20.2 million compared with an operating loss of $4.8 million a year ago.
 For the first nine months of the year, the company reported net income of $14.0 million compared with a net loss of $33.7 million for the first three quarters a year ago. After preferred dividends of $12.2 million, and an extraordinary charge of $7.4 million related to the early retirement of debt, the loss for shareholders of common stock narrowed to 16 cents a share compared with a loss of $1.23 per share in the comparable period a year ago.
 Revenues in the first nine months of 1992 decreased 1.5 percent to $3.0 billion.
 Donald E. Moffitt, president and chief executive officer, attributed the financial results to improved air freight business levels at Emery Worldwide, continued earnings strength for the Con-Way regional trucking carriers and cost vigilance in CF MotorFreight, whose long-haul, less- than-truckload business has been particularly suffering from a weak recovery of the nation's economy.
 Moffitt noted that the corporation continued to strengthen its balance sheet, retiring $11.3 million in debt in the quarter. In the past 12 months, the company has retired $147.8 million in debt. As of Sept. 30, the company had more than $264 million in cash and equivalents.
 "The entire CF organization is proud of Emery Worldwide, which earned an operating profit of $2 million in September and had its best quarter since being acquired by CF in 1989," Moffitt said of Emery's third quarter results. "The $43-million operating income improvement so far this year and the September profit shows the success of Emery's productivity improvements and the growing confidence among customers. The recent $100-million annual contract with General Motors is one indication of renewed confidence in Emery."
 Emery reported a third quarter operating loss of $6.3 million compared with an operating loss of $29.6 million in the third quarter a year ago. Revenues in the quarter for Emery Worldwide were $289.4 million, up modestly from revenues of $288.8 million in the comparative quarter a year ago, despite lower revenues from the U.S. Postal Service.
 Moffitt said that Emery's shipment levels bottomed out in the mid-summer and have been rising ever since. In the third quarter, Emery's important commercial revenue increased 5.2 percent.
 CF MotorFreight reported operating income of $12.4 million on revenues of $561.5 million. That compares with operating income of $13.9 million and revenues of $556.8 million in the third quarter of a year ago.
 Both total CF MotorFreight tonnage and higher rated, less-than- truckload tonnage were flat in the quarter.
 Moffitt noted that CF MotorFreight in the fourth quarter began a process of reshaping its management and operations to address structural changes that are occurring in the long-haul LTL industry.
 "CF MotorFreight is responding aggressively to these changes, which place greater emphasis on delivery times, improved operational efficiencies, differing service requirements and greater reliance on emerging technologies and communication," Moffitt said.
 Con-Way Transportation Services, which includes the company's four regional motor carriers and an intermodal rail and ocean subsidiary, reported operating income of $14.1 million, up 29.8 percent from operating income of $10.9 million in the third quarter a year ago. Revenues in the quarter totaled $187.0 million, up 9.5 percent from the year ago quarter.
 Total CTS tonnage increased 4.5 percent in the third quarter while higher rated LTL tonnage increased 8.8 percent.
 Moffitt noted that Con-Way's expanded intermodal service earned a modest operating profit in the quarter, marking the first time that all five Con-Way start up companies were in the black.
 Con-Way Transportation also announced that its Con-Way Central Express carrier was expanding its service center operations to 10 cities in central and eastern Pennsylvania and western and central New York state.
 Consolidated Freightways Inc. is a diversified transportation company with businesses in long-haul and regional trucking, air freight, rail and ocean intermodal services, logistic management and customs brokerage.
 CONSOLIDATED FREIGHTWAYS INC. AND SUBSIDIARIES
 Condensed Statements of Consolidated Operations
 (Dollars in thousands except per share amounts)
 Three Months Ended Sept. 30,
 1992 1991
 REVENUES
 CF MotorFreight $ 561,493 $ 556,783
 Con-Way Transportation
 Services 186,974 170,828
 Emery Worldwide Airlines 289,376 288,755
 $ 1,037,843 $ 1,016,366
 OPERATING INCOME (LOSS)
 CF MotorFreight $ 12,378 $ 13,946
 Con-Way Transportation
 Services 14,141 10,898
 Emery Worldwide Airlines (6,315) (29,611)
 20,204 (4,767)
 OTHER EXPENSE, NET (9,485) (11,806)
 INCOME (LOSS) BEFORE INCOME
 TAXES (BENEFITS) 10,719 (16,573)
 INCOME TAXES (BENEFITS) 7,686 (1,015)
 NET INCOME (LOSS) 3,033 (15,558)
 Preferred Stock Dividends 4,832 3,171
 Net Loss Applicable to
 Common Stock $ (1,799) $ (18,729)
 Average Common Shares
 Outstanding 35,213,825 35,037,916
 NET LOSS PER COMMON SHARE $ (0.05) $ (0.53)
 CONSOLIDATED FREIGHTWAYS INC. AND SUBSIDIARIES
 Condensed Statements of Consolidated Operations
 (Dollars in thousands except per share amounts)
 Nine Months Ended
 Sept. 30,
 1992 (A) 1991 (A)
 REVENUES
 CF MotorFreight $ 1,646,224 $ 1,609,719
 Con-Way Transportation
 Services 542,472 473,738
 Emery Worldwide Airlines 842,541 992,465
 $ 3,031,237 $ 3,075,922
 OPERATING INCOME (LOSS)
 CF MotorFreight $ 41,669 $ 42,101
 Con-Way Transportation
 Services 43,662 30,381
 Emery Worldwide Airlines (33,515) (76,226)
 51,816 (3,744)
 OTHER EXPENSE, NET (33,148) (33,644)
 INCOME (LOSS) BEFORE INCOME
 TAXES (BENEFITS) AND
 EXTRAORDINARY CHARGE 18,668 (37,388)
 INCOME TAXES (BENEFITS) 4,712 (3,701)
 NET INCOME (LOSS) BEFORE
 EXTRAORDINARY CHARGE 13,956 (33,687)
 EXTRAORDINARY CHARGE FROM EARLY
 RETIREMENT OF DEBT, NET OF
 RELATED INCOME TAX BENEFITS
 OF $4,561 7,428 ---
 NET INCOME (LOSS) 6,528 (33,687)
 Preferred Stock Dividends 12,227 9,527
 Net Loss Applicable to
 Common Shareholders $ (5,699) $ (43,214)
 Average Common Shares
 Outstanding 35,181,454 35,019,209
 PRIMARY EARNINGS (LOSS)
 PER COMMON SHARE:
 NET INCOME (LOSS) BEFORE
 EXTRAORDINARY CHARGE $ 0.05 $ (1.23)
 EXTRAORDINARY CHARGE (0.21) ---
 NET LOSS $ (0.16) $ (1.23)
 FULLY DILUTED EARNINGS
 (LOSS) PER COMMON SHARE:
 NET INCOME (LOSS) BEFORE
 EXTRAORDINARY CHARGE $ 0.04 $ (1.23)
 EXTRAORDINARY CHARGE (0.19) ---
 NET LOSS $ (0.15) $ (1.23)
 (A) Includes a first quarter favorable restatement of 2 cents per share for the retroactive adoption in the second quarter of 1992, of SFAS No. 109, "Accounting for Income Taxes." The effect on prior periods was immaterial.
 -0- 10/21/92
 /CONTACT: J.R. Allen of Consolidated Freightways, 415-494-2900/
 (CNF) CO: Consolidated Freightways Inc. ST: California IN: TRN SU: ERN


CK-GT -- SJ003 -- 2702 10/21/92 09:04 EDT
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