Con-way income drops, cuts outlook
Transportation firm Con-way Inc. on Wednesday reported that its first quarter earnings fell short of Wall Street earnings-per-share expectations, citing worse-than-expected weather and a lackluster business climate.
The San Mateo, Calif.-based firm reported net income for the first quarter of 2008 of $22.5 million down from $24.9 million in the first quarter of 2007.
Excluding items, the firm's first quarter earnings per share were 54 cents. Analysts were looking for 60 cents per share according to Reuters Estimates.
Con-way's first quarter revenue was up 19.9 percent over the year-ago period to $1.2 billion.
The firm also lowered it's full-year outlook range from $3.40 to $3.80 per share to $3.00 to $3.40 per share, citing the a weak demand environment and continued increases in fuel costs. Analysts are predicting a full-year earnings-per-share of $3.62, according to Reuters Estimates.
'We’re operating in a challenging and uncertain economic environment, which continues to restrain demand and place pressure on pricing and margins,' Chief Executive Douglas Stotlar said in a statement. 'Until such time as we have tangible evidence of improving economic conditions, we believe a cautious, measured approach to the outlook for earnings is warranted.'
Con-way shares opened down 9.2 percent Thursday morning at $45.50 on the New York Stock Exchange.
Con-way income drops, cuts outlook
