Con-way Inc. reports 41% profit growth

The truckload freight and logistics provider had net profits of $21.8 million in first quarter 2015.    Con-way Inc. reported net profits of $21.8 million for the first quarter of 2015, a 40.8 percent increase compared with the first quarter of 2014. The Ann Arbor, Mich.-based truckload freight and logistics provider likewise increased diluted earnings per share from 22 cents per diluted share to 37 cents per diluted share.
   Revenues at Con-way reached $1.37 billion for the first quarter, a slight increase from the same period last year. Operating income was up 57.1 percent year-over-year to $51.9 million.
   During the first quarter of 2015, Con-way repurchased 370,000 shares of its common stock under its $150 million stock repurchase plan. As of March 31, the company had repurchased a total of 725,000 common shares under this plan.
   Con-way Freight reported revenues of $855.6 million for the first quarter, a 0.9 percent increase from $848.0 million the previous year. The company said revenues benefited from higher base rates, which were offset by lower fuel surcharges and lower tonnage.
   Operating income in the freight unit more than doubled compared to the first quarter or 2014, reaching $37.4 million. Tonnage per day decreased 1.4 percent year-over-year.
   “Con-way Freight delivered substantially improved results this quarter, reflecting sustained progress with our revenue management initiatives,” President and CEO Douglas W. Stotlar said in a statement. “While daily tonnage declined slightly compared to last year’s first quarter, we were able to increase yield. Going forward, we remain focused on initiatives to drive long-term profitable growth.”
   The company’s third-party logistics subsidiary, Menlo Logistics, reported a 2.6 percent bump in revenues to $417.1 million in Q1 2015. Con-way attributed the increased primarily to growth in warehouse management and transportation management services.
   Menlo Logistics had $8.6 million in operating income, a 39.6 percent increase from Q1 2014.
   “Menlo turned in a solid quarter with across-the-board increases in revenues, net revenues and operating income,” said Stotlar. “Our emphasis remains on securing profitable new business and continuing to improve operating performance with existing accounts.”
   Revenues fell 11.1 percent at Con-way Truckload to $138.7 million in the first quarter, primarily due to lower fuel surcharge revenue, according to Con-way. “Excluding fuel surcharge, revenue also was adversely affected by lower fleet utilization due to fewer seated tractors, which reduced total loaded miles, partially offset by higher revenue per loaded mile,” the company said.
   Operating income, however, was up 18.5 percent to $7.6 million for the quarter, thanks to lower expenses and improved pricing.
   “The tight driver market is limiting our ability to fully seat our fleet. However, we were encouraged with early results from innovative, new recruiting efforts to bring more drivers into our company – and incent them to stay,” commented Stotlar. “At the same time, we improved our profit performance, which benefited from lower fuel and other operating costs.”