Con-way’s 2Q Income Improves
Carrier Boosts Dividend, Sets Repurchase Program
Con-way Inc.’s second-quarter profit rose as its truckload, less-than-truckload and logistics operations all improved.
Net income increased to $53.7 million, or 93 cents per share, from $42.9 million, or 75 cents, a year ago.
Operating income rose to $102.7 million from $76.3 million, and revenue rose 8% to $1.49 billion, Con-way reported July 30.
Con-way also set a share repurchase program, under which it can buy up to $150 million of its stock, and said it will boost its quarterly dividend to 15 cents per share from 10 cents per share, or 60 cents from 40 cents on an annual basis.
“Our cash balance has supported strategic investments that have lowered our fleet ages, improved our pension funded status and enabled margin expansion,” CEO Douglas Stotlar said in a statement.
The Con-way freight less-than-truckload unit’s operating income jumped 51.8% to $83 million, and revenue gained 5.4% to $940.5 million.
Con-way Truckload’s operating income increased 24.2% to $13.5 million, while revenue rose 1.4% to $164.1 million.
Operating income at the company’s Menlo Worldwide Logistics unit rose 6.3% to $6.4% million, while revenue rose 17.1% to $433.7 million.
Con-way is ranked No. 4 on the Transport Topics Top 100 list of U.S. and Canadian for-hire carriers.
|By MIchael G. Malloy|
© 2014, Transport Topics, American Trucking Associations Inc.
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