USFREIGHTWAYS 2ND-QUARTER EARNINGS DECLINE

USFREIGHTWAYS 2ND-QUARTER EARNINGS DECLINE    USFreightways Corp. said second quarter net income fell 58.4 percent to $11.4 million, compared with $27.5 million for the year-earlier period.
   Revenue declined 1.6 percent to $623.9 million for the quarter as the company suffered from lower volumes and losses in its freight forwarding business.
   Operating earnings for the regional trucking group was $28.7 million, down 39 percent from the second quarter of 2000. The LTL group's operating ratio increased to 93.8 from 90.2. LTL revenue fell 2.9 percent to $465.3 million, as shipments decreased 2.5 percent and LTL tonnage fell 4.9 percent.
   Operating earnings for the logistics group fell 45 percent to $2.2 million, while revenue rose 2.6 percent to $66.9 million. The drop in earnings was due to lower activity at USF Processors and a less profitable mix of business in USF Logistics.
   USF Worldwide saw a loss of $2.9 million in operating earnings, while revenue rose to $66.1 million, from $63.2 million. The forwarding unit continues to suffer from a worldwide industry slowdown.
   Samuel K. Skinner, chairman, president and chief executive officer of USFreightways, said cost cutting and organization changes made by USF Worldwide's new management team should improve results through the rest of the year.
   For the first six months of 2001, USFreightways reported net income of $19.9 million, compared to $49.8 million for the first half of 2000. Revenue fell slightly, to $1.25 billion.