Con-way’s Third-Quarter Profit Rises
Con-way Inc. reported third-quarter net income increased as revenue in the freight and logistics business rose, but truckload business declined.
Net income increased to $45.6 million, or 78 cents per share, from $30.6 million, or 53 cents. Revenue rose to $1.5 billion from $1.4 billion the same period last year, Ann Arbor, Michigan-based Con-way reported.
Less-than-truckload revenue at Con-way Freight, the company’s largest business unit, rose 5.2% to $946.3 million, helped by improved yields. Operating income, excluding interest and taxes, rose 39.4% to $71.9 million on increased pricing.
Operating income at its Menlo Logistics unit declined 7% to $7.6 million from $8.2 million but revenue rose 16.7% to $443.9 million.
“Despite the year-over-year decline in operating income, sequential improvements continued in 2014. This was primarily due to increased operating efficiencies at a few large warehousing accounts, as well as contract renegotiations which increased margins on a number of transportation management accounts,” Con-way CEO Douglas Stotlar said in a statement.
Con-way Truckload revenue dipped 1.8% to $159.2 million, but operating oncome in that unit rose 19.2% to $10.7 million from $9 million.
“Network capacity continued to be adversely impacted by the challenging market for drivers. Our recently implemented enhancements to driver pay have helped stabilize the driver turnover rate. However, the number of unseated trucks remains elevated, which hampers our ability to fully meet the capacity needs of our customers,” Stotlar said.
Con-way ranks No.4 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
