Con-way Net Income Drops 18% on Lower LTL, TL Profits

Net income fell 18% at Con-way Inc. in the second quarter, pushed down by weaker results at its less-than-truckload and truckload businesses. 

The company that ranks No. 4 on the Transport Topics Top 100 list of the largest for-hire carriers in the U.S. and Canada earned $44.0 million, or 76 cents per share, compared with $53.7 million, or 93 cents, in the 2014 period. Revenue declined more than 4% to $1.43 billion.

Con-way Freight, the third-largest LTL operator, reported profits before interest and taxes of $69.5 million, a decline of 16%. The 2.5% decrease in revenue was due to lower tonnage and fuel surcharges. Tons per day fell 3% and revenue per 100 pounds of freight rose 0.4%, including fuel surcharges and 5.5% excluding those fees.

Profit at the unit was reduced due to driver wage increases and higher claims costs, the company statement said.

At Con-way Truckload, No. 18 in that group, profit before interest and taxes fell 31% to $9.3 million, and revenue dipped 13% to $142.7 million. Fewer miles run and reduced fuel surcharge collections hurt revenue.

“We made consistent progress during the quarter increasing the number of seated tractors,” CEO Douglas Stotlar said. “We expect Con-way Truckload’s performance to improve.”

Menlo Logistics bucked the trend at the other two units by increasing operating income by 25%, helped by better pricing. Revenue fell 6.4% to $405.9 million.

Results should improve in the unit due to new contract wins, Stotlar said.