EX-99 3 cnf_99b2.txt Exhibit 99(b) CNF INC. COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollars in thousands) Six Months Ended June 30, 2001 2000 Combined Fixed Charges and Preferred Stock Dividends: Interest Expense $ 15,027 $ 14,281 Capitalized Interest 612 2,767 Amortization of Debt Expense 482 496 Dividend Requirement on Series B Preferred Stock [1] 5,333 5,433 Dividend Requirement on Preferred Securities of Subsidiary Trust 3,126 3,126 Interest Component of Rental Expense [2] 24,966 24,495 $ 49,546 $ 50,598 Earnings (Loss): Income (Loss) from Continuing Operations before Taxes [3] $ (333,733) $ 146,045 Fixed Charges 49,546 50,598 Capitalized Interest (612) (2,767) Preferred Dividend Requirements [4] (5,333) (5,433) $ (290,132) $ 188,443 Ratio of Earnings (Loss) to Combined Fixed Charges and Preferred Stock Dividends: (5.9)x 3.7 x Deficiency in the coverage of Fixed Charges by Earnings (Loss) before Fixed Charges (339,678) - [1] Dividends on shares of the Series B cumulative convertible preferred stock are used to pay debt service on notes issued by the Company's Thrift and Stock Plan. [2] Estimate of the interest portion of lease payments. [3] For the six months ended June 30, 2001, results included a $340.5 million loss from a restructuring charge at Emery Worldwide and Menlo Logistics' $31.6 million loss from the failure of a significant customer. [4] Preferred stock dividend requirements included in fixed charges but not deducted in the determination of Income (Loss) from Continuing Operations before Taxes.