WSJ891026-0021

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891026-0021. Business Brief -- Consolidated Freightways Inc.: @ Third-Quarter Net Fell 77% @ On Emery's Expected Loss

10/26/89

WALL STREET JOURNAL (J) CNF EARNINGS (ERN) TRANSPORTATION, TRUCK AND SHIP LINES, RAILROADS (TRA) Consolidated Freightways Inc. reported a 77% drop in third-quarter net income, citing expected losses in its Emery Worldwide shipping business. The Menlo Park, Calif., company said net was $7.4 million, or 22 cents a share, down from $32.3 million, or 86 cents a share, a year ago. Revenue totaled $1.01 billion, a 43% increase from $704.4 million, reflecting the company's acquisition of Emery earlier this year. Profit also suffered because of "intense" discounting in its long-haul trucking business, the company said. Analysts had expected Consolidated to post a slim profit, and the company's stock was down only 25 cents to $30.25 in New York Stock Exchange composite trading yesterday. "They have to continue to tighten their belts," said Craig Kloner, an analyst at Goldman, Sachs amp Co.