Con-way Reports 4Q Loss
Con-way Inc. late Monday reported a fourth-quarter loss, suspended its full-year earnings outlook and set a pay freeze for management and administrative employees.
The carrier reported a fourth-quarter loss from continuing operations of $49.7 million, or $1.09 a share, compared with earnings from continuing operations of $36.9 million, or 78 cents, a year earlier. Revenue fell to $1.13 billion, from $1.2 billion.
Con-way Freight, its regional less-than-truckload operation, reported an operating loss of $9.4 million, compared with a profit of $55.2 million a year ago. LTL revenue fell 13.4% to $640.3 million, while tonnage per day declined 7.7%.
The Con-way Truckload unit’s operating income jumped 64.7% to $14.5 million, while revenue fell 6.3%, to $110.9 million.
Menlo Worldwide Logistics, Con-way’s logistics and supply chain management unit, reported an operating loss of $38.6 million, compared with earning $5.9 million a year earlier. Revenue rose 9.7%, to $373.1 million.
For the full-year, Con-way reported net income from continuing operations of $58.6 million, or $1.23 per share, compared with $146.8 million, or $3.06, a year earlier. Both years included the effect of special charges.
Last month, Con-way lowered its estimate of full-year earnings from continuing operations to between $2.20 and $2.35 per share, from a previous forecast of $2.60 to $2.80.
Con-way said it was suspending its practice of providing annual earnings guidance, “due to the uncertainty of the global economy and lack of visibility into future business volumes and market trends,” and that it would freeze pay levels for management and administrative employees this year.
“These were difficult decisions, necessary to align our costs for the current environment, and to help position us to weather what looks to be an extremely tough recessionary economy,” Chief Executive Officer Douglas Stotlar said in a statement.
Con-way is ranked No. 6 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
