EMERY FORWARDING, MENLO RECOVER FROM LOSSES
Improved results at Emery Forwarding and Menlo Worldwide Logistics in the fourth quarter allowed their parent company CNF Inc. to end the year with a fourth-quarter group net income of $22 million, as compared to a heavy group deficit of $217.1 million a year earlier.
The profit recovery follows a restructuring of activities of Emery and Menlo, the forwarding and logistics arms of the Palo Alto, Calif.-based CNF group.
For the fourth quarter, Emery reported an operating income of $4.6 million, which included $5.7 million from the settlement of the Express Mail contract. This compares with an operating loss of $366.4 million in the year-ago period, which included $350.5 million of costs related to the closure of Emery Worldwide Airlines.
Emery’s revenue increased by 8 percent in the latest quarter, to $497.4 million, from $460 million in the fourth quarter of 2001. Emery’s international air freight revenue per day grew 19 percent compared with the prior-year period.
For the fourth quarter, Menlo Worldwide Logistics earned an operating income of $8.6 million, compared to an operating loss of $2.7 million a year ago. The logistics arm’s revenue for the quarter was $255.9 million, up 17 percent.
For the year 2002, Emery posted an operating loss of $11.9 million, as compared to a huge operating deficit of $790.3 million recorded in 2001. Revenue decreased to $1.8 billion last year, from $2 billion in 2001.
By contrast, Menlo Worldwide Logistics made a full-year operating profit of $31.8 million, as compared to a 2001 loss of $15.8 million.
The CNF group, which also includes Con-Way Transportation Services and Vector SCM, made a net income of $93.6 million in 2002, as compared to a net loss of $402.9 million in 2001. Group revenue decreased to $4.8 billion in 2002, from $4.9 billion in 2001.
Gregory L. Quesnel, president and chief executive officer of the group, said that CNF’s results for the year were “much improved” from 2001. “Con-Way reported a solid year despite the weak economy, Menlo Worldwide Logistics had a strong recovery, the results at Emery Forwarding improved substantially and Vector SCM contributed significantly to earnings this year,” he said.