CNF REPORTS LOSSES AFTER RESTRUCTURING CHARGE
CNF Inc., the parent company of Emery Worldwide and Con-Way Transportation Services and Menlo Logistics, reported a second-quarter net loss of $227.9 million
The loss includes a special charge of $207.7 million for an operational restructuring of Emery Worldwide Airlines; a $2.9-million charge for a legal settlement of returned aircraft; and a write-off of $19.3 million of unrealizable accounts receivable due to the failure of a Menlo Logistics customer, Homelife, which ceased operation.
The second-quarter loss compares to net income of $43.7 million for the year earlier period. CNF saw an operating loss of $352 million including the charge. Revenue was $1.26 billion, compared to $1.40 billion for the second quarter of 2000.
For the first six half of 2001, CNF reported a net loss of $214.4 million. Excluding the special charge, the company reported first-half net income of $21.7 million, compared to $79.9 million for the first half of 2000. Revenue was $2.54 billion, compared with $2.72 billion in the same period in 2000.
“We have put these special charges behind us and we can now focus more intently on increasing value for CNF shareholders,” said Gregory L. Quesnel, CNF president and chief executive officer.
Emery Worldwide reported a $25.2-million loss from operations in the second quarter before the restructuring charge, compared to a $12.9-million operating income in the second quarter of 2000. Including the charge, Emery had an operating loss of $370.4 million. Revenue for the second quarter fell 16 percent to $530.9 million.
Emery's North American air freight revenue per day was down 2.4 percent and tonnage fell 29 percent, while international revenue per day declined 12 percent and freight tonnage decreased 13 percent.
Menlo Logistics saw an operating income of $9.4 million before the accounts receivable write-off, compared to operating income of $8.5 million in the year-earlier quarter. Including the write-off, Menlo reported an operating loss of $22.3 million. Revenue was $234.5 million, down 2 percent.
Con-Way saw second-quarter operating income of $42.4 million, down 35 percent, while revenues were $489.2 million, down 7 percent. The year-earlier results included $20.9 million in revenue from the sale of Con-Way's truckload operations in August 2000.