Con-way Lowers 3Q Earnings Guidance

September 19, 2006 9:55 AM, EDT

Click here to write a Letter to the Editor.

on-way Inc. lowered its third quarter earnings forecast late Monday, citing a drop in business volumes and the sale of its stake in its Vector SCM joint venture with General Motors.

Con-way, the parent company of less-than-truckload carrier Con-way Freight, said it now expects to earn between $1.10 and $1.15 a share in the third quarter, down from earlier estimates of $1.21 to $1.29.

Douglas Stotlar, president of Con-way Inc., cited a "slowing of economic activity across our customer base,” which he said constrained LTL volumes for the third quarter.

Con-way also removed from its guidance an estimated third quarter profit contribution of 5 cents a share from Vector SCM — a supply chain management firm jointly operated by Con-way and General Motors Corp.

In June, GM announced plans to buy Con-way’s 50% stake in Vector. (Click here for previous coverage.)

The company plans to announce its third quarter earnings on Oct. 17 after the close of the market.