CNF’S EMERY, MENLO POST MIXED RESULTS

   Emery Worldwide, the air-freight division of California-based CNF
Transportation Inc., reported a 21.6-percent drop in operating income, to
$17.4 million, in the second quarter.
   In the first half of 1999, operating income at Emery fell nearly 30
percent to $21 million. Revenue grew 11.2 percent to $585.9 million in the
second quarter. In the first six months, Emery’s revenue was up 6.4 percent
at $1.1 billion.
   CNF said Emery’s North American air-freight tonnage fell 2 percent in
the second quarter, compared to last year, while international tonnage rose
11 percent.
   CNF’s Menlo Logistics reported a 5.8-percent increase in second-quarter
operating income of $5.3 million, Revenue jumped 22.2 percent to $181.6
million. In the first six months, Menlo’s operating income grew 11.7
percent to $9.8 million. Revenue increased 27.4 percent to $342.2 million.
   CNF’s Priority Mail contract with the U.S. Postal Service generated
operating income of $1.3 million on revenue of $118.2 million.
   The USPS also is considering a rate increase proposal from CNF that
could lead to positive adjustments in the company’s first half results.