Analyst: Con-Way moving toward improved earnings

Analyst: Con-Way moving toward improved earnings A main Wall Street transportation analyst said May 30 that trucking firm Con-way Inc. is on track for 'solid' second quarter earnings, despite ongoing challenges in the trucking industry.
   Thom Albrecht, a Stephens Inc. analyst and one of 15 Wall Street experts that follow San Mateo, Calif.-based Con-Way, reaffirmed his 'overweight' rating on the trucking firm stock, predicting that earnings in the firm would improve in the second quarter.
   Albrecht raised his second quarter earnings prediction of Con-Way from 82 cents per share to 90 cents per share.
   The improved earnings prediction was tempered by continued concerns about rising fuel prices and competitiveness in trucking and less-than-truckload rates, Albrecht said.
   Shares of Con-Way closed at $48.81 Friday, up $2.51, or 5.4 percent. Early morning trading Monday saw shares in Con-Way off 30 cents to $48.50 per share.
   Despite the increased earning prediction for the trucking firm, which is now above the consensus of other Con-Way-watching analysts, Albrecht's prediction is still lower than what the trucking firm earned in the second quarter of 2007.
   Albrecht also raised his 2008 earnings prediction for Con-Way to reflect the higher second-quarter prediction, at the same time lowering his prediction for the firm's 2009 expectations.
   Longbow Research analyst Lee Klaskow, also a Con-Way watcher, warned Monday: 'The rapid rise in diesel prices impedes the industry’s ability to fully recover its costs due to the lag in fuel surcharge recovery.'
   Klaskow said diesel fuel prices have reached their highest point since Hurricane Katrina.
   Wall Street Con-Way watcher Justin Yagerman, of Wachovia, maintained his 'outperform' rating on Con-Way last week, but said the continuing sluggishness in the general U.S. economy left him pessimistic about much of the trucking sector.