Con-way’s Third-Quarter Profit Rises
Con-way Inc. reported a higher third-quarter profit than the same quarter last year, and revenue was little changed.
Net income rose to $30.6 million, or 53 cents a share, from $25.3 million, or 45 cents, the company said Oct. 30.
Revenue was little changed at $1.4 billion, and operating income increased to $67.7 million from $55.2 million, the less-than-truckload carrier said.
Operating income at LTL unit Con-way Freight, the company’s largest business division, jumped 49.7% to $34.4 million, while revenue rose 4.8% to $899.3 million.
Con-way Truckload’s operating income declined 20.4% to $9 million from a year ago, while revenue increased 1.3% to $162.2 million.
Its Menlo Worldwide Logistics unit’s operating income fell 25.6% to $8.2 million, and revenue fell 11% to $380.5 million.
“Menlo is implementing several large new projects, which have contributed to growth in net revenue while also having an adverse impact on operating income,” Con-way CEO Douglas Stotlar said in a statement.
“As these projects become fully operational, we expect their negative impact on operating income to subside. Despite the expected margin improvement from these projects, increased employee costs and IT investments may constrain Menlo’s income growth next year,” he said.
Con-way, based in Ann Arbor, Mich., is ranked No. 3 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers.
