Con-WayÆs earning up after Vector sale
Con-Way Inc. said Monday that the sale of Vector SCM LLC, its logistics joint venture with General Motors, helped its fourth quarter performance in what it described as a 'slack economy.'
The San Mateo, Calif.-based freight transportation and logistics company's quarterly net income was $81.8 million, compared with $51.8 million a year before. Operating income was up 23 percent to $109.8 million while revenue dropped 7 percent to $998.6 million.
For the whole of 2006, Con-Way reported net income of $265.2 million, including gains from the sale of Con-way Expedite in the third quarter, and the sale of Vector in the fourth quarter. Con-Way's 2005 net income was $222.6 million.
Operating income for the year was $401.8 million, an 8.3 percent increase from $370.9 million in 2005. Revenue rose 2.6 percent to $4.22 billion, from $4.12 billion in the previous year.
'Our financial performance in 2006 was not up to the standards our shareholders and employees have come to expect for the Con-way enterprise,' said Douglas W. Stotlar, Con-way’s president and chief executive officer. '2006 was a year of adversity, but it also was the catalyst to take a hard look at our organization, assess our strengths and weaknesses, and identify areas for change, improvement and new approaches for how we sell into our markets.
'Despite our disappointing financial results, we closed out 2006 operationally stronger and we will build on that momentum,” Stotlar added.