CNF Warns on 2Q Profits, While U.S. Xpress Says Results Improving

CNF Inc., owner of several subsidiaries including Con-Way Transportation Services and Emery Worldwide, said late Tuesday its second-quarter earnings would be lower than previously forecast, while truckload carrier U.S. Xpress Enterprises said its results would be better than expected.

Palo, Alto, Calif.-based CNF said earnings would be between 26 cents and 31 cents per share. It earned 37 cents in last year's second quarter and analysts expected 41 cents for the current quarter, Bloomberg reported.

"The weak economy continues to affect all of our businesses, particularly North American operations at Menlo Worldwide Forwarding," said Gregory L. Quesnel, CNF president and chief executive officer. On April 21, CNF said second-quarter earnings would be between 42 cents and 49 cents.

Quesnel also said demand for premium, next day delivery of heavy shipments is "very weak" in North America. Con-Way's operating income is expected to increase more than 20%, despite flat volume compared with last year, the company said.

CNF is scheduled to report second-quarter results on July 21.

U.S. Xpress, Chattanooga, Tenn., said its net income would be 14 cents to 16 cents per share for the second quarter based on improved performance in its truckload and Xpress Global business segments.

It is scheduled to report July 16.

The company reported profits of 9 cents per share in the second quarter of 2002 and 1 cent per share for the first quarter of 2003.

CNF is ranked No. 4 and U.S. Xpress No. 25 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics

(Click here for the full press release from CNF.)

(Click here for the full press release from U.S. Xpress.)

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