UPSer
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- Joined
- Nov 26, 2001
- Posts
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Associated Press
CNF to Sell Forwarding Business to UPS
Tuesday October 5, 1:00 pm ET
CNF to Sell Menlo Worldwide Forwarding Business to UPS in Cash, Debt Deal
PALO ALTO, Calif. (AP) -- Transport and logistics company CNF Inc. on
Tuesday said it agreed to sell its Menlo Worldwide Forwarding business to
United Parcel Service Inc. for $150 million cash and the assumption of about
$110 million debt.
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CNF said the sale would result in an after-tax loss of about $260 million,
while UPS expects the deal to slightly boost earnings in 2005. The
transaction is expected to close in the fourth quarter.
Analysts surveyed by Thomson First Call put UPS' 2005 earnings at $3.35 per
share.
The sale includes Menlo Worldwide's air and ocean forwarding operations in
more than 175 countries, its North American services and facilities, its
Dayton, Ohio-based operations hub, Menlo Worldwide Expedite! and Menlo
Worldwide Trade Services.
Menlo Worldwide Forwarding employs more than 8,000 people and posted 2003
gross revenue of $1.9 billion.
The company is not selling its Menlo Worldwide Logistics, Menlo Worldwide
Technologies, Vector SCM or Con-Way Transportation Services units.
CNF said it would reschedule its planned Oct. 18 third-quarter earnings
report and will present results on the basis of continuing and discontinued
operations.
Shares of CNF rose $2.06, or 4.9 percent, to $43.91, while shares of UPS
fell 24 cents, or less than 1 percent, to $77.03 in midday trading on the
New York Stock Exchange.
CNF to Sell Forwarding Business to UPS
Tuesday October 5, 1:00 pm ET
CNF to Sell Menlo Worldwide Forwarding Business to UPS in Cash, Debt Deal
PALO ALTO, Calif. (AP) -- Transport and logistics company CNF Inc. on
Tuesday said it agreed to sell its Menlo Worldwide Forwarding business to
United Parcel Service Inc. for $150 million cash and the assumption of about
$110 million debt.
ADVERTISEMENT
CNF said the sale would result in an after-tax loss of about $260 million,
while UPS expects the deal to slightly boost earnings in 2005. The
transaction is expected to close in the fourth quarter.
Analysts surveyed by Thomson First Call put UPS' 2005 earnings at $3.35 per
share.
The sale includes Menlo Worldwide's air and ocean forwarding operations in
more than 175 countries, its North American services and facilities, its
Dayton, Ohio-based operations hub, Menlo Worldwide Expedite! and Menlo
Worldwide Trade Services.
Menlo Worldwide Forwarding employs more than 8,000 people and posted 2003
gross revenue of $1.9 billion.
The company is not selling its Menlo Worldwide Logistics, Menlo Worldwide
Technologies, Vector SCM or Con-Way Transportation Services units.
CNF said it would reschedule its planned Oct. 18 third-quarter earnings
report and will present results on the basis of continuing and discontinued
operations.
Shares of CNF rose $2.06, or 4.9 percent, to $43.91, while shares of UPS
fell 24 cents, or less than 1 percent, to $77.03 in midday trading on the
New York Stock Exchange.
