Con-way issues profit warning

Con-way issues profit warning Con-way Inc. sharply revised downward its full-year earnings on Wednesday in response to falling demand for freight transport as the U.S. economic downturn worsens and disruptions from hurricanes Ike and Gustav.
   The San Mateo, Calif.-based trucking and logistics conglomerate said earnings from continuing operations are expected to be in the range of $2.60 to $2.80 per diluted share versus previous guidance of between $3 and $3.40 per share.
   “The economy has been battered by an unprecedented confluence of macroeconomic crises, curtailing demand for freight transportation services. Over the past several weeks we have seen volumes decline further, exacerbated by September's weather events, all of which continue to pressure yields. To date, the traditional peak seasonal uptick in demand has been muted so we expect the challenging business environment to continue through the 2008 fourth quarter,' said Douglas Stotlar, chief executive officer.
   Through the first six months of the year, income from continuing operations, including taxes, was down to $73 million from $76 million in 2007. Con-way experienced a strong second quarter recovery in operating income to $95 million after several quarters in which profits tumbled more than 50 percent from mid-2006 levels due to an industry-wide slowdown in volume and bad timing with a yield initiative.
   Con-way’s stock closed at $42.94 per share Wednesday, down $1.17 or 2.65 percent.
   The company had $4.4 billion in sales last year. ' Eric Kulisch