Con-way reports lower earnings
Con-way Inc. said it had third quarter profit of applicable to common shareholders of $13.5 million compared to $38.8 million in the same period last year.
Revenue was $1.13 billion in the quarter ending Sept. 30, compared to $1.37 billion in the same 2008 period.
The company said Con-way Freight had operating profit of $22.8 million in the quarter, 63 percent less than in the same 2008 period, But it said the unit continued to post sequential quarter-to-quarter 2009 tonnage growth. It said profit was constrained due to pricing levels, higher variable operating costs associated with the tonnage growth and lower fuel surcharge revenues.
“While pricing is likely to remain under pressure, we believe the increased network volumes put us in a better position competitively,” the company said.
The company said its Menlo Worldwide Logistics unit had operating profit of $9.5 million, 159 percent more than the third quarter of 2008.
“Menlo continues to enjoy a strong sales pipeline and an excellent win rate on new projects, which has helped offset business declines from existing clients,” said Douglas W. Stotlar, Con-way president and chief executive officer.
Con-way Truckload had third quarter operating profit of $10.6 million, 30 percent less than in the same quarter the prior year.