CNF reports record net income

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CNF Inc. reported record fourth-quarter 2005 net income from continuing operations of $53.9 million, after preferred stock dividends, up 30.9 percent compared with fourth-quarter 2004 net income from continuing operations of $41.1 million. Net income in the 2005 fourth quarter was $51.2 million compared to 2004 fourth-quarter net income of $32.2 million.

Total revenues in the 2005 fourth quarter were $1.09 billion, an increase of 12.6 percent from $967.5 million in the fourth quarter of 2004. Operating income grew 15.0 percent to $90.9 million compared with operating income of $79.0 million in the same period a year ago.

For the full-year 2005, CNF reported net income from continuing operations of $221.5 million, after preferred stock dividends, compared with 2004 net income from continuing operations of $142.2 million. Including the effect of discontinued operations, net income for the full-year 2005 was $215.3 million, compared to a 2004 net loss of $124.1 million. The 2004 net loss included a loss of $266.3 million primarily from the disposition of the company’s former forwarding unit, which was sold in December 2004.

Revenues for the full-year 2005 rose to $4.17 billion, a 12.3 percent increase over 2004’s revenues of $3.71 billion. Operating income was $370.7 million, an increase of 30.5 percent from $284.2 million in 2004.

“The CNF organization generated record revenues and income in 2005 by providing exemplary products to the market, effective cost control and maintaining financial discipline,” says Douglas W. Stotlar, president and chief executive officer. “In a year that saw our organization accomplish a major transition in executive management, the focus of our people on service excellence and superior quality for our customers never wavered. These impressive results are a testament to that focus, the strength and determination of our team and the robust nature of our business model.”

In its stock repurchase program, the company acquired $37.5 million in common shares during the 2005 fourth quarter, bringing the full-year 2005 repurchase amount to $149.1 million, representing 3,054,700 shares. The program, approved last year, authorizes CNF to repurchase up to $300 million in stock through 2006. The company expects to purchase approximately $37.5 million in common shares during the first quarter of 2006.