CF Dips Into Red After First Quarter Charges
April 28, 2000
Consolidated Freightways Corp., Menlo Park, CA, had a net loss of $3.0 million in the first quarter after non-recurring charges. It had net income of $1.1 million before the charges. Net income for the same period last year was $6.8 million.
Revenue for the quarter grew 6.3 percent to $593.6 million compared to last year. Total shipments increased 3.3 percent with tonnage nearly flat compared to last year's first quarter. Revenue per hundredweight increased 7.6 percent to $17.57.
The non-recurring charges, net of tax, of $4.1 million included an anticipated settlement of the tax-sharing liability with former parent CNF Inc., as well as wage severance benefits due to an
administrative reorganization in the quarter.
"We are pleased with the improving profit and operating trends we're seeing through the first quarter," said G. Robert Evans, vice chairman and chief executive officer. "We are very confident that the operations and freight profile problems of 1999 are well understood and are being fixed. As the quarter progressed the company showed improving trends in every major operating category and we are encouraged by the company's 97.4 operating ratio in March.
"We're also pleased that our proactive safety programs are reducing injuries and lost time which should significantly reduce workers' compensation expenses over time," Evans added.