Transportation conglomerate CNF, which owns Emery Worldwide, Menlo Logistics, and Con-Way Transportation Services, has reported a $10.4-million loss from continuing operations in the third-quarter of 2001. Revenue for the third-quarter of 2001 was $1.2 billion, down 16% from 2000, the company said.
That loss resulted in part from lost revenue from the grounding of all commercial airline flights in the United States following the September 11 terrorist attacks. CNF, based in Palo Alto, CA, said the loss included an additional after-tax write off of $3.8-million from the business failure of Homelife, a former customer of Menlo Logistics.
The net loss for common shareholders for the first nine months of 2001 was $185.8-million, or $3.81 per share. In addition to the Priority Mail settlement, special items included in the nine-month period, when special items and discontinued operations are excluded, CNF reported nine-month net income for common shareholders of $9.0-million, or 18 cents per diluted share. Operating income for the first nine months of 2001, excluding special charges, was $59.5-million.
For the first nine months of 2001, CNF posted revenues of $3.7 billion and a loss of $185.8-million, which included the fallout from special charges and discontinued operations. Though CNF’s income for the first nine months reached $59.5-million, it took after-tax charges of $207.7-million for an operational restructuring at Emery Worldwide Airlines, $2.9-million for a legal settlement, and $23.1-million for unrealizable accounts receivable due to the business failure of Homelife.
At less-than-truckload subsidiary Con-Way Transportation Services, third-quarter 2001 operating income dropped 18% to $42.6-million from $51.8-million in the same quarter a year ago, which included a $5.5-million loss from the sale of Con-Way's truckload operation in August 2000. Revenue was $491.2-million, down 5% from $517.6-million in third-quarter 2000, which included $12.6-million of revenue from the truckload operation. Total freight tonnage per day declined 4% in the third-quarter and LTL tonnage per day decreased 3%.
Emery Worldwide reported a $47-million loss from operations in the third-quarter of 2001 compared with a loss of $5.9-million in the same period last year. The third-quarter of 2000 included a full quarter of revenue from the company’s Express Mail contract that was terminated by the U.S. Postal Service on August 26, 2001, and an $11.9-million loss on the termination of aircraft leases. Revenue in third-quarter 2001 was $471.5-million, down 28% from $657.0-million in 2000.
CNF added that its third-quarter operating results included approximately $17-million of net cost for providing a substitute fleet of aircraft following the suspension of operations of Emery Worldwide Airlines’ fleet. Operating results were also hurt by the cost of addressing the FAA’s issues with the airline, the weak economy, and the grounding of airline flights following the September 11 terrorist attacks.