CNF NET INCOME UP 36%
CNF Inc., the Palo Alto, Calif.-based parent of Con-Way Transport Services and Menlo Worldwide, said its first-quarter net income improved 35.6 percent to $18.3 million.
The first-quarter net result includes an after-tax benefit of $14 million for unusual items, including sales of excess property, a payment under the Air Transportation Safety and System Stabilization Act, and proceeds from the early termination of a contract.
CNF's first-quarter operating income was $40.4 million, up from $33.7 million in the first quarter of 2001. Revenue was off 16.4 percent, to $1.07 billion.
'We think we have seen the bottom of the recession,' said Greg Quesnel, president and chief executive officer. 'March was a relatively good month, as both Menlo Worldwide and Con-Way had improved results from February. But overall, the upturn so far is weak.'
Con-Way Transportation Services reported operating income of $33.7 million, down 8 percent. Operating income included a net gain of $8.7 million from the sale of excess property.
Revenue was down 3 percent to $454.7 million. Carrier tonnage per day increased 2.1 percent and less-than-truckload tonnage per day rose 2.4 percent.
'Con-Way's margins remain strong, but have been hurt by one of the most competitive LTL environments in years,' CNF said.
Menlo Worldwide, which was formed Dec. 5, includes the reporting results of Emery Forwarding, Menlo Worldwide Logistics, Menlo Worldwide Technologies and Vector SCM.
Menlo Worldwide's first quarter operating income of $3.3 million offset a year-earlier loss of $3.0 million. Revenue was down 24 percent to $611.3 million.
Emery Forwarding saw an operating loss of $5.7 million, compared to an operating loss of $6.5 million for the year-earlier period. The first-quarter 2001 results include a $9.9-million net gain from the air stabilization act. Revenue was down 32 percent to $583.2 million
North American air freight revenue per day declined 30 percent on a 22-percent drop in tonnage per day and a 10-percent decline in yield.
Menlo Worldwide Logistics saw operating income of $7.8 million, down from $8.2 million last year. Revenue slipped 3 percent to $216.5 million.