CNF REPORTS FIRST-QUARTER PROFIT

CNF REPORTS FIRST-QUARTER PROFIT    Transportation holding company CNF Inc. said its profit fell to $15.9 million in the first quarter from $18.3 million in the first quarter of 2002. Excluding special items in both periods net income was $11.5 million compared to $4.4 million for the year-earlier period.
   The first quarter included a $7.2-million payment ($4.4 million after taxes) from the federal government's Air Transportation Safety and System Stabilization Board to compensate air-freight forwarder Emery Forwarding for losses incurred as a result of the Sept. 11, 2001 terrorist attacks on the United States. Emery, now known as Menlo Worldwide Forwarding, received $9.8 million ($6 million after taxes) from the stabilization fund in the first quarter of 2002.
   Con-Way Transportation Services, CNF's multi-region less-than-truckload carrier, raised operating income 10 percent to $37.2 million. Excluding $8.7 million from a real estate sale, operating income in the first quarter of 2002 was $25 million. Con-Way revenue was up 14 percent to $519 million from $455 million.
   The company's logistics division, Menlo Worldwide — which includes General Motors Corp. lead logistics provider Vector SCM, and forwarding, logistics and technology operations — posted operating income of $3.6 million, up 7 percent, while revenue increased 12 percent to $687 million.
   Menlo Forwarding continued to be a drag on earnings, with an operating loss of $5.4 million compared with a loss of $5.7 million in the year-earlier period. The Menlo Worldwide Logistics unit had operating income of $6 million vs. $7.8 million a year ago on revenue of $241 million, up from $216.5 million.