NEW YORK (CNNfn) - Two trucking firms that once were a single entity beat Wall Street's expectations Monday, but one had a smoother ride than the other.
CNF Transportation Inc. (CNF) and its former subsidiary Consolidated Freightways Corp. both beat first-quarter earnings expectations as compiled by First Call.
CNF reported first-quarter net income of $40.3 million, or 74 cents per diluted share, up from $16.9 million, or 33 cents, in the year- ago period.
Net income includes a non-recurring gain of 16 cents per diluted share from settlement of a lawsuit.
Excluding the settlement, earnings per diluted share were 58 cents, beating First Call's figure by 7 cents. CNF was up 3-3/8 at 43-3/8 in early afternoon trading.
Consolidated Freightways (CFWY), which was spun off from CNF in late 1996, reported first quarter earnings of 30 cents per diluted share, beating First Call's forecast of 28 cents.
Net income for the quarter slipped to $6.8 million from $7 million, or 29 cents, a year ago.
W. Roger Curry, CNF's president and chief executive officer, said the company met several unexpected obstacles, including weather related costs.
Curry also said there were delays in the transition of information technology services between CNF and another vendor that led to unexpected costs.
He said the transition should be cleared up early in the second quarter. Curry also said the company lost ground after "business combination discussions" in the fourth quarter. CNF stock was up 1-9/16 at 12 in early afternoon trading.