Con-way’s Third-Quarter Profit Declines
Con-way Inc. said its third-quarter profit fell by nearly two-thirds from a year ago, as freight demand declined.
Its net income for the quarter was $13.5 million, or 27 cents per share, down from $38.8 million, or 81 cents, a year ago.
Revenue dropped 17.3% to $1.13 billion, the carrier said in a statement late Tuesday.
Less-than-truckload unit Con-way Freight’s operating income fell 62.7% to $22.8 million, with “profitability . . . diminished from lower pricing driven by overcapacity in the LTL market, and higher variable operating costs due to increased tonnage levels,” the company said.
LTL revenue fell 14.3% to $692.8 million, while tonnage per day increased 5.1% over the previous third quarter.
Con-way Truckload’s operating income fell 30.1% to $10.6 million, including a $2.3 million charge related to the disposition of 150 tractors that will be replaced during the fourth quarter. Excluding that charge, operating income was $130 million.
Truckload unit revenue was $95.7 million, after the elimination of $50.6 million in inter-company revenue, compared with 2008 third-quarter revenue of $140.9 million, after elimination of $42.7 million in inter-company revenues.
Menlo Worldwide Logistics, Con-way’s logistics and supply chain management unit, reported operating income of $9.5 million, up 159% from a year ago, reflecting “effective cost controls, ongoing improvements in operating efficiency, and gain-share income.”
Logistics unit revenue fell 185 to $344.4 million, reflecting “a decline in fuel-surcharge revenue from previous levels, and significantly lower costs for purchased transportation sourced by Menlo's transportation-management group as the company continued to leverage pricing opportunities with third-party trucking service providers.”
Con-way is ranked No. 6 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
