Con-way Reports Fourth-Quarter Profit
Con-way Inc. reported a fourth-quarter profit compared with a loss a year ago, though excluding costs from the previous year, operating earnings at its less-than-truckload unit slipped due to higher health-care costs.
Con-way earned $2.4 million, or 4 cents a share, compared with a loss of $1.9 million, or 4 cents, a year ago. Revenue rose 8.7% to $1.21 billion.
The 2010 quarterly costs included $1.1 million in costs and a $2 positive tax adjustment, while the 2009 quarter included $3.4 million in administrative expenses and $2.6 million in increased tax expenses.
Con-way Freight, its LTL unit and largest business operation, reported fourth-quarter operating income of $1.8 million, down from $2.8 million a year ago, due primarily to higher health-care costs. LTL revenue rose 5.7% to $736 million and tonnage per day was essentially flat compared with the previous fourth quarter.
Con-way said last month that its fourth-quarter profit would decline on higher health costs.
Its Menlo Worldwide Logistics unit’s operating income rose 13% to $6.7 million. Revenue rose 7.5% to $367 million.
Con-way Truckload’s operating income slipped to $7.3 million, from $8.2 million, primarily due to lower miles. Revenue rose to $143 million, from $139.7 million, on higher fuel surcharges.
For the full-year, Con-way reported net income of $4 million, or 7 cents per share, compared with a 2009 loss of $110.9 million, or $2.33 per share. Revenue rose 16.5% to $4.95 billion.
Con-way Inc. is ranked No. 6 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
