Trucking helps Con-way achieve second quarter profit increase
Freight transportation and logistics company Con-Way Inc. reported second quarter net income of $74.1 million, up 11 percent from the same period in 2005, on revenue of $1.1 billion.
Revenues were up 7.7 percent from $1.02 billion a year ago. Operating income was $111.8 million, an increase of 7.4 percent
The San Mateo, Calif.-based Con-way attributed the improved results to higher yields from the company’s Con-way Freight less-than-truckload division as trucking companies have been able to command strong rates. Con-way Freight’s yield was up 6.1 percent with the help of fuel surcharges, and 2.4 percent excluding surcharges.
Trucking operations, including truckload, accounted for $102.3 million of Con-way’s operating income. Logistics unit Menlo Worldwide had operating profit of $12.9 million. Con-Way also took a $5.1 million charge to close its domestic air freight forwarding subsidiary.
Menlo Worldwide’s logistics revenue was $345.7 million, up 9 percent from the 2005 second quarter revenue of $317 million. Operating income was $6.1 million.
Menlo Worldwide’s Vector SCM joint logistics venture with General Motors had operating income of $6.8 million. GM recently announced its intention to buy out Menlo’s portion of the joint venture and handle logistics on its own.
Trucking helps Con-way achieve second quarter profit increase
