Con-way reports strong second quarter earnings

Transportation and logistics services provider Con-way Inc. reported strong second fourth quarter earnings results this week.

Net income of $41.8 million—or $0.74 per share—was up 30 percent annually. And operating income—at $80.1 million—saw a 33.2 percent annual improvement, with revenue—at $1.45 billion—seeing a 7.2 percent improvement.

Con-way President and CEO Douglas W. Stotlar said on an investor call that second quarter performance reflected disciplined operations, good cost controls and margin expansion at all of its business units.

“The consistent execution of our strategy is delivering the intended results,” he said.

Quarterly revenue at Con-way Freight, the company’s less-than-truckload (LTL) unit—at $878.5 million—was up 4.6 percent, with yield—or revenue per hundredweight—up 3.2 percent year-over-year—3.2 percent excluding fuel surcharge. Tonnage per day increased 0.9 percent, and operating income of $53.4 million was up 36.5 percent compared to $39.2 million last year.

“Overall, demand for LTL services in the second quarter was slightly softer and earlier this year,” said Stotlar. “June tonnage was a little light early in the month but finished on a strong note, we saw the same pattern in July with daily tonnage levels strengthening towards the end of the month and finishing slightly ahead of last July.

He went on to say that the balance between supply and demand enable Con-way Freight to implement a general rate increase for non-contractual business and to continue to secure mid single-digit price increases on contract renewals that came due during the quarter.

Quarterly revenue at Menlo Worldwide, Con-way’s third-party logistics unit—at $448.0 million—was up 13.7 percent, and net revenue of $161.8 million was up 10.1 percent. Menlo’s operating income of $12.7 million was up 4.9 percent compared to $12.1 million last year.

Quarterly revenue at Con-way Truckload—at $162.9 million—was up 4.8 percent year-over-year, and Con-way officials said the annual increase was due to improved fuel surcharge recovery, price increases, and higher asset utilization. Operating income at

Con-way Truckload—at $14.6 million—was up 41.6 percent compared to $10.3 million last year.