Con-way reports earnings drop, optimistic about Menlo outlook

Con-way reports earnings drop, optimistic about Menlo outlook Con-way Inc., parent of Menlo Logistics, reported net income from continuing operations for the first quarter of $29.0 million (after preferred stock dividends), compared to $46.2 million in the same period in 2006.
   Revenue was $1 billion, a 4.2 percent decrease from $1.05 billion last year. Net income to common shareholders was $31.9 million compared to $44.7 million in 2006.
   The 2006 first quarter results from continuing operations also included $4.2 million in earnings from Vector SCM, which subsequently was sold later in the year. In continuing operations for the 2007 first quarter, the company recorded a $2.7 million charge for the post-closing settlement of outstanding items related to the Vector sale.
   “Targeted sales initiatives we put in place last year are producing tangible results for Con-way Freight,' said Douglas W. Stotlar, president and chief executive officer. 'While operating results were down year over year, we saw business increase each month in the quarter.”
   Commenting on Menlo Worldwide, Stotlar said, “Our global logistics company continues to gain momentum. We’ve had a surge in project awards and expect to see the revenue effect as these come online during the year. Menlo is doing a superb job managing its margins.
   “Globally, logistics outsourcing is increasing. Menlo is well positioned around the world to capitalize on this trend with its industry vertical approach, multiclient facilities and cost-effective, scalable solutions.”