Emery to Use Fewer Planes, Cuts 900 Jobs
CNF, Palo Alto, CA, said it will take a one-time restructuring charge of $170 million to $200 million, or $3.49 to $4.10 per share, against second-quarter results at the Emery unit.
The company said domestic volumes at Emery Worldwide are down about 30 percent from a year ago, reflecting a ``sharp and continuing slowdown,'' particularly in the automotive, telecommunications and technology sectors.
In addition to expense reductions taken since last year as the economy declined, Emery expects significantly lower annual operating costs because of the restructuring.
CNF said Emery Worldwide's North American network will now use 38 aircraft, down from 54 aircraft a year ago, resulting in a 30 percent reduction in capacity to match projected volumes.
Chutta Ratnathicam, CEO of Emery Worldwide, said Emery will increase its sales focus on second-day and deferred services while maintaining market-share leadership in the North American next-day heavy air freight market. Emery will continue to pursue aggressive growth in its "asset-light" business segments, such as international air and ocean forwarding, customs brokerage, logistics management and expedited delivery services.