CNF 2003 profits drop in despite operational gains

CNF 2003 profits drop in despite operational gains    Transportation conglomerate CNF Inc. said it earned a profit of $26.8 million during the fourth quarter ended Dec. 31, up 22 percent from $22 million in 2002, on revenue of $1.35 billion.
   CNF achieved the higher profit figure despite taking a $7.8-million charge to restructure Emery Forwarding into Menlo Worldwide Forwarding.
   Operating income was $56 million compared with $54 million in 2002, which included a $5.7 million gain from settlement of the company’s former express mail contract with the U.S. Postal Service.
   For the full year, CNF reported shareholder net income of $83.8 million, a drop from $93.6 million in 2002. However, operating income was up 5 percent to $191.4 million from $181.8 million. The company generated $5.1 billion in revenue, a 7 percent increase from the prior year.
   CNF’s trucking unit, Con-Way Transportation, reported operating income of $58 million, up 58 percent from $36.7 million for the quarter on revenue of $577.5 million. For the year, Con-Way generated $2.2 billion in revenue. Operating revenue was up to $195 million from $147 million in 2002.
   The company’s Menlo Worldwide Logistics unit was the best performing sector of the company with operating income of $6.1 million in the fourth quarter, but that figure is down from $8.6 million in the year prior period. Gross revenue was $253 million compared to $256 million in the prior-year period. Full-year gross revenue was $1 billion, up from $969 million. Worldwide Logistics operating income was $25.3 million for the full year, down from $31.8 million in 2002.
   Vector SCM, the company’s automotive logistics venture with General Motors, reported operating income of $5.4 million, a 9 percent gain.
   Menlo Worldwide Forwarding, previously known as Emery Forwarding, dragged corporate results down, losing $14 million in the quarter compared with an operating gain of $4.6 million in the fourth quarter of 2002. Unit revenue was up 5 percent to $524.4 million, lead by a 12-percent increase in international revenue. North American revenue was down due primarily to a change in the product mix to more second-day and deferred freight, CNF said.