Con-way returns to profitability

Con-way returns to profitability    Con-way Inc. said it had second quarter net profit of $33 million, down 34 percent from the same 2008 period, but a turnaround from a $154 million loss in the first quarter of this year.
   Revenue for the San Mateo, Calif.-based firm in the second quarter was $1.06 billion, down 21 percent from the same period the prior year.
   Commenting on the quarter, Con-way President and Chief Executive Officer Douglas W. Stotlar said, “Despite the challenges of the recessionary economy and a weak freight market, we returned the company to profitability.”
   Con-way Freight, the company’s less-than-truckload operation, had operating income of $49 million, a 36.7 percent decrease from what it earned in the year-ago period. Tonnage per day handled by Con-way Freight decreased 7 percent from the previous-year second quarter, reflecting continued weak demand. Yield for Con-way Freight declined 17.4 percent, though excluding the fuel surcharge, yield decreased 6.7 percent. Competitive pricing conditions driven by excess market capacity continued to dampen yield comparisons, the company said.

Stotlar

   Menlo Worldwide Logistics, the company’s global logistics and supply chain management operations, reported operating income of $7.8 million, a 57.4 percent increase from $5 million earned in the second quarter of 2008. The company said Menlo’s quarterly performance could be attributed to “new contract wins, continued operational excellence and prudent cost management.”
   Con-way Truckload, the company’s full-truckload transportation operation, reported operating income of $6.9 million, a 44.7 percent decline from the same 2008 period. The company said weak demand and overcapacity kept pricing under pressure. The company sold 195 older tractors to “right-size” its fleet.