EMERY, MENLO REPORT SOLID RESULTS

EMERY, MENLO REPORT SOLID RESULTS    CNF Inc., parent company of Emery Worldwide and Menlo Logistics, reported a 16 percent increase in first quarter profit on strong growth in international air freight and logistics.
   First quarter operating income at Emery, which flies planes in the U.S. and operates as a forwarder overseas, more than doubled    to $7.4 million, from $3.6 million last year. Revenue increased 14 percent to $601.2 million.
   Emery’s silver lining did have a cloud, however. While international air freight revenue grew 25 percent, North American air freight revenue was flat, as North American traffic dropped 4 percent.
   “Revenue and profit growth at Emery were driven by our international operations,” said Gregory L. Quesnel, CNF president and chief executive officer. “Results from our North American operations were disappointing and were affected by higher than normal expense for aircraft due to planned maintenance aimed at improving fleet productivity.”
   Emery’s North American operations have come under increased scrutiny by federal regulators following the February crash of an Emery DC-8 freighter in California that killed three crew members.
   Menlo Logistics, CNF’s third-party logistics subsidiary, said operating income jumped 68 percent to $7.6 million in the quarter, on a 31 percent increase in revenue of $209.9 million.
   “This was Menlo’s best quarter ever,” Quesnel said. “Menlo’s financial results in the quarter benefited from start-up fees and profits from several new projects brought on line.”
   CNF said its Priority Mail operations recorded break-even results on revenue of $135.2 million, up 14 percent. CNF operates Priority Mail sorting facilities in the eastern U.S. for the U.S. Postal Service. The company has sued the USPS in federal court for not adhering to the terms of the Priority Mail contract, which CNF says requires the postal service to pay higher rates.