CNF Inc. has reported third-quarter net income from continuing operations of $43.6 million or 79 cents per diluted share.
Third-quarter net income for common shareholders was $33.5 million, or 61 cents per diluted share, including a net loss of $10.1 million (18 cents per diluted share) from discontinued operations. In the third quarter of 2001, net income for common shareholders was $28.6 million, or 59 cents per diluted share, and included an after-tax gain of $39 million (80 cents per diluted share) from discontinued operations.
"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 president and CEO. "Operating income at our Vector SCM unit was below expectations due to delays in implementing new business cases. All of the CNF companies continue to meet their productivity and cost goals and the strategic moves we made in the past year are producing the planned results. We were also pleased to see modest year-over-year revenue increases at Con-Way and Menlo Worldwide Logistics."
The 79 cents per diluted share from continuing operations included several unusual items. These included a tax benefit of $25 million (44 cents per diluted share) from the settlement of a tax issue related to aircraft maintenance expense, and an after-tax loss of $2.2 million (4 cents per diluted share) from the write-off of uncollectible receivables.
The above-mentioned third-quarter loss of 18 cents per diluted share from discontinued operations in 2002 included a $2.9 million (5 cents per diluted share) net gain on the final settlement of the former Priority Mail contract that was offset by a $13 million (23 cents per diluted share) after-tax loss provision for remaining workers' compensation claims of Consolidated Freightways incurred prior to its spin-off from CNF in 1996.
Operating income for the third quarter of 2002 was $43.5 million compared with a loss of $5.4 million in the same period a year ago. Revenue for the third quarter of 2002 was $1.23 billion compared with $1.18 billion in third-quarter 2001.
For the first nine months of 2002, net income for common shareholders was $71.6 million or $1.33 per diluted share. This compares with a net loss for common shareholders of $185.8 million, or $3.81 per diluted share, for the first nine months of 2001.
Operating income for the first nine months of 2002 was $127.8 million compared with an operating loss of $323.6 million in the same period a year ago. Revenue for the first nine months of 2002 was $3.48 billion compared with $3.72 billion in the same period of 2001.