CNF’S RESULTS DIVE, EMERY GOES INTO THE RED

CNF’S RESULTS DIVE, EMERY GOES INTO THE RED    CNF Inc., the parent company of integrated air freight forwarder Emery Worldwide, reported first-quarter net income of $13.5 million, down from $33.4 million in the first quarter of 2000, as the slowdown in the U.S. economy took its toll on the company.
   Group operating income for the latest quarter dived to $33.7 million, from $71.5 million in the same quarter a year ago. Revenue for the first quarter was $1.28 billion, down slightly on the $1.32 billion for the year-earlier period. The most recent quarter included one less working day than the first quarter of 2000.
   Net income from continuing operations for the first quarter of 2000 included a $2.6-million non-recurring gain from the sale of securities.
   “All of CNF’s businesses were affected by the continuing downturn in the U.S. economy,” said Gregory L. Quesnel, president and chief executive officer.
   Con-Way Transportation Services reported first-quarter operating income of $36.7 million, down from $56.7 million in the first quarter of 2000. First-quarter 2001 revenue was $469.0 million, down from $508.4 million in year-earlier quarter, which included $24.0 million of revenue from Con-Way’s truckload operation, sold last August.
   During the quarter, Con-Way said it has formed Con-Way Air Express, a domestic air freight forwarding company that is scheduled to begin operations on May 14.
   Emery Worldwide reported a $6.5-million first-quarter operating loss, compared with an operating income of $6.8 million in the year-earlier quarter. Revenue fell 2 percent to $583.2 million.
      “The decline in air freight business for Emery’s North America segment has been steep and significant,” Quesnel said. “The decline is primarily attributable to the economy.” North America air freight revenue per day was down 12 percent in the first quarter, whereas international revenue per day increased by 3 percent.
   CNF said Emery is focusing on managing its cost structure to meet the challenges presented by the current economy and “is considering alternatives for solving the longer-term issues facing the company.”
   Menlo Logistics reported a first-quarter operating income of $8.2 million, up 7 percent from the first quarter of 2000. Revenue at Menlo was $222.6 million, an increase of 6 percent from the first quarter of 2000.
   “While Menlo was not immune to the economic slowdown, it succeeded in increasing both revenue and profits,” Quesnel said.
   If the current downward volume trends continue, CNF expects Con-Way to have a decline in year-over-year earnings, and Emery to report a larger loss for the second quarter.