Con-way’s Second-Quarter Income Declines
Con-way Inc. said late Wednesday its second-quarter net income fell to $13.9 million, or 26 cents per share, from $31.5 million, or 64 cents, a year ago.
Revenue gained 23.7% to $1.31 billion, while operating income was $35.4 million, down from $66 million a year ago, the company said in a statement.
Earlier this year, Con-way had reported a first-quarter loss of $4.1 million, down from a much bigger loss in the same period last year.
Less-than-truckload Con-way Freight, the company’s largest unit, had a second-quarter operating profit of $17.2 million, down from $49 million a year earlier.
LTL revenue improved 25.8% to $817million, while weight per day jumped 29.2%.
Seasonally stronger demand and rebounding economic activity supported revenue growth in all segments, Chief Executive Officer Douglas Stotlar said in a statement.
LTL levels surged to “record volumes, resulting in higher variable operating costs,” he said, reflecting “the effect of wage increases implemented in January this year and resumption of accruals in April for paid time-off benefits.”
Con-way Truckload’s operating income slipped to $5.1 million, from $6.9 million last year. Revenue rose 1.5% to $145.5 million.
Menlo Worldwide Logistics, Con-way’s logistics and supply chain unit, had operating income of $13 million, a 66.8% over the $7.8 million a year ago, as revenue jumped 17.8% to $385.8 million.
Con-way is ranked No. 6 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
