Menlo Forwarding sale impacts CNF 3rd-quarter results

Menlo Forwarding sale impacts CNF 3rd-quarter results    CNF Inc. reported a third-quarter net loss due to planned sale of Menlo Worldwide Forwarding to UPS, while seeing double-digit improvements in continuing operations.
   Palo Alto, Calif.-based CNF reported a net loss to common shareholders of $216.2 million, which included a $260.5 million after-tax impairment charge for the planned sale of Menlo Worldwide Forwarding. CNF announced the deal Oct. 5 to sell the unit to UPS for $150 million in cash and the assumption of $110 million in debt. The companies expect to close the deal by the end of the year.
   The deal did not include CNF units Menlo Worldwide Logistics, Vector SCM, Con-Way Transportation Services and Road Systems.
   CNF said after-tax income from continuing operations was $39.8 million, up 17 percent from the year-earlier period. Reporting forwarding results as 'discontinued operations, CNF said after-tax income was $4.4 million.
   Third quarter revenue was $973.6 million, up 16 percent. Operating income from continuing operations rose 15 percent to $78.4 million.
   Con-Way Transportation Services, the regional carrier group, reported operating income of $70.6 million, up 31 percent, for the third quarter. Revenue rose 19 percent to $684.4 million, while regional carriage tonnage per day was up 13.8 percent and regional carrier yield improved 3.5 percent. The group's operating ratio improved to 88.4 from 89.1 in the year-earlier quarter.
   Menlo Worldwide reported operating income of $8.5 million, down from $15.3 million in the third quarter of 2003. Menlo Worldwide Logistics saw operating income of $5.8 million, down from $6.5 million, while revenues rose 9 percent to $286.8 million.
   For the first nine months of 2004, CNF reported after-tax income from continuing operations of $101.1 million and an after-tax net loss from discontinued operations of $257.4 million. Net income to common shareholders was $156.3 million, compared to $57.0 million for the year earlier period.
   Revenue rose 15 percent to $2.74 billion and operation income from continuing operations was $205.2 million, up 29 percent.