Con-way’s 4Q Income Improves on Vector Sale
Company’s CEO Cites ‘Year of Adversity’
Click here to write a Letter to the Editor.
Transportation firm Con-way Inc. earned $82.4 million or $1.66 a share in the fourth quarter, up from $49.9 million or 90 cents a year earlier.
The results included a gain of $41 million, or 82 cents a share, from the company’s sale of its Vector logistics joint-venture General Motors last year. (Click here for previous coverage.)“Our financial performance in 2006 was not up to the standards our shareholders and employees have come to expect for the Con-way enterprise,” Chief Executive Officer Douglas Stotlar said in a statement.“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,” he said.The parent of less-than-truckload carrier Con-way Freight’s revenue fell 7% to $998.9 billion. Revenue at the company’s core freight and transportation unit, which includes LTL, truckload and freight brokerage fell 4% to $679.8 million.Revenue at its Menlo Worldwide logistics unit fell 13% to $318.9 million as the company sought to eliminate low-margin accounts.For the full year, Con-way’s profit rose 21% to $259 million or $4.98 a share, from $214 million or $3.83 per share in 2005.Con-way, which changed its name from CNF Inc. last April, is ranked No. 6 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies.
Transportation firm Con-way Inc. earned $82.4 million or $1.66 a share in the fourth quarter, up from $49.9 million or 90 cents a year earlier.
The results included a gain of $41 million, or 82 cents a share, from the company’s sale of its Vector logistics joint-venture General Motors last year. (Click here for previous coverage.)“Our financial performance in 2006 was not up to the standards our shareholders and employees have come to expect for the Con-way enterprise,” Chief Executive Officer Douglas Stotlar said in a statement.“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,” he said.The parent of less-than-truckload carrier Con-way Freight’s revenue fell 7% to $998.9 billion. Revenue at the company’s core freight and transportation unit, which includes LTL, truckload and freight brokerage fell 4% to $679.8 million.Revenue at its Menlo Worldwide logistics unit fell 13% to $318.9 million as the company sought to eliminate low-margin accounts.For the full year, Con-way’s profit rose 21% to $259 million or $4.98 a share, from $214 million or $3.83 per share in 2005.Con-way, which changed its name from CNF Inc. last April, is ranked No. 6 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies.
