CNF THIRD-QUARTER INCOME IMPROVES DESPITE CF WRITEOFF

CNF THIRD-QUARTER INCOME IMPROVES DESPITE CF WRITEOFF    CNF inc. reported net income of $33.5 million for the third quarter, up from $28.6 million for the year-earlier period, despite a $10.1-million loss due to the bankruptcy of Consolidated Freightways in September.
   CNF reported a $13.0-million after-tax loss due to CF, the less-than-truckload unit, covering workers compensation claims incurred prior to its spin-off from CNF in 1996. The after-tax loss was offset by a net gain on a final settlement of CNF's former Priority mail contract with the U.S. Postal Service.
   Operating income for CNF's third quarter was $43.5 million, compared with a loss of $5.4 million in the year-earlier period. Revenue was $1.23 billion, up from $1.18 billion.
      'Quarterly results at Con-Way, Emery Forwarding and Menlo Worldwide Logistics were slightly improved from those of the second quarter,' said Gregory L. Quesnel, CNF's president and chief executive officer.
   Con-Way Transportation services saw operating income slip $1 million to $41.6 million, while revenues rose 7 percent to $527.7 million.
   Menlo Worldwide's operating income was $6 million, compared to an operating loss of $45.9 million in the year-earlier period. Revenue was $701.8 million, up from $693.2 million.
   Emery Forwarding saw an operating loss of $5.0 million, compared with an operating loss of $47.0 million for the year-earlier period. Revenue was down 5 percent to $477.0 million, including the $24.5 million from the former Express Mail contract.
   Menlo Worldwide Logistics saw operating income increase to $8.4 million from $1.0 million, including a $6.3-million writeoff of uncollectable receivables from the business failure of a customer. Revenue rose 15 percent to $255.0 million.
   CNF expects fourth quarter earnings to be in the range of 38 cents to 46 cents per share.