CNF Inc. announced today that it has laid off 900 workers from its Emery Worldwide subsidiary due to lagging air shipments.
Emery is being hurt by the U.S. slowdown in the automotive, technology and telecommunications industries, CNF said. The Palo Alto, CA-based unit is expected to lose $20 million to $25 million this quarter, after a $6.5-million operating loss in the first quarter.
CNF said Emery’s U.S. shipment volumes are down about 30% from a year ago, and the unit has cut its fleet to 38 planes from 54, the company said.
The company is considering other alternatives such as selling Emery or buying back CNF shares, said Greg Quesnel, company CEO, in a conference call with analysts and investors.
Shipment volumes this quarter at CNF's Con-Way Transportation Services regional-trucking unit also are lower than a year earlier. Tonnage levels are expected to fall “in the low single-digit range” from last year's second quarter, the company said.
Emery may break even or have a profit if third- and fourth-quarter volumes are as little as 10% lower than the year-earlier period, Chutta Ratnathicam, Emery’s CEO, said in the conference call.