CNF SEES 59% JUMP IN 3RD-QUARTER INCOME

CNF SEES 59% JUMP IN 3RD-QUARTER INCOME    CNF Inc. reported third-quarter net income of $28.6 million, 59 percent higher than the third quarter of 2000. Total revenues fell 12 percent to about $1.2 billion.
   The results included a $39.0-million gain from discontinued operations following a $235-million partial cash settlement with the U.S. Postal Service over its former Priority Mail contract. The year-earlier period included a $13.5-million loss on the discontinuance of the Priority Mail operations.
   Emery Worldwide reported a $47.0-million loss from operations in the third quarter, more than seven times more than the loss of $5.9 million in the prior-year period. Third-quarter 2001 revenue was $471.5 million, down 28 percent.
   “Emery continues to make adjustments in its aircraft capacity and infrastructure to reflect lower business levels,” said Gregory L. Quesnel, CNF president and chief executive officer.
   Emery’s North American air freight revenue per day was down 38 percent and international revenue per day declined 18 percent from the third quarter of 2000. North America air freight tonnage per day fell 38 percent, while international tonnage per day decreased 18 percent.
   Emery's volumes are expected to be below last year's fourth quarter by about 335 percent, but yield is expected to hold steady. Internationally, volumes are projected to decline by more than 20 percent with a gross margin that will be flat or slightly improved.
   Con-Way Transportation Services reported third-quarter operating income of $42.6 million, down 18 percent. Revenue was $491.2 million, down 5 percent. Total CTS regional carrier tonnage per day declined 4 percent in the third quarter and LTL tonnage per day decreased 3 percent.
   Conway's fourth-quarter earnings are also expected to be below prior-year levels.
   Menlo Logistics reported third-quarter operating income of $7.3 million before the $6.3-million write-off when former retail customer Homelife ceased operations. Menlo’s revenue of $221.7 million was down 2 percent. Menlo recently said contracts it has signed with six major new customers in 2001 should provide the company with an additional $100 million in annual revenue.
   CNF Inc. is a transportation holding company based in Palo Alto, Calif.