Con-Way closes forwarding unit

Con-Way closes forwarding unit    Freight transportation and logistics company Con-Way said Monday it has shut down its domestic air freight forwarding subsidiary, Con-Way Forwarding, because of a difficult competitive environment and lack of a strategic fit with the rest of the company.
   “Our core businesses are high-performance surface freight transportation and global contract logistics,” Con-Way Chief Executive Officer Douglas Stotlar said in a statement. “We believe that focusing our investments on these key segments is the right strategy for our enterprise and our investors, and offers the best opportunity for sustainable growth in revenues, profits and shareholder value.”
   Con-Way said it would take an $8 million charge in the second quarter associated with asset write-offs, severance costs and lease expenses. The closure is not expected to materially affect revenues, the $4.2 billion San Mateo, Calif.-based company said.
   Con-Way recently changed its name from CNF, taking the name of its most recognizable operating company, regional less-than-truckload carrier group, Con-Way Transportation Services. Con-Way Central Express, Southern Express and Western Express have been folded under the Con-Way Freight banner. Con-Way Forwarding was Con-Way Air under the previous set up.
   All the moves are part of Stotlar’s effort since taking the helm last year to change the parent company from a traditional holding company to one that actively oversees all its businesses.
   The company also owns Menlo Worldwide, which incorporates its logistics division and Vector Supply Chain Management, a joint venture with General Motors.
   The new operating units are Con-Way Freight, for LTL service; Con-Way Transportation for truckload service; and Menlo Worldwide for contract logistics.
   CNF sold its international heavy-freight forwarding subsidiary Menlo Worldwide Forwarding to UPS in late 2004