Con-way announces third quarter profit of $29.1m
Con-way Inc. has reported 2011 third quarter net income of $29.1m, compared to a 2010 third quarter net loss of $8.2m. Operating income in the 2011 third quarter was $61.1m compared to $12.5m earned in the third quarter a year ago. Revenue for the 2011 third quarter was $1.38bn, an 8.4% increase from last year’s third quarter revenue of $1.27bn.
Douglas W. Stotlar, Con-way’s president and CEO, noted that the quarter’s results reflected consistent operating improvement in Con-way’s core businesses compared to last year’s third quarter.
Con-way Freight, the company’s less-than-truckload (LTL) operation, overcame soft demand trends early in the quarter to turn in a solid performance, with business levels steadily improving as the quarter progressed. "Con-way Freight’s continued focus on managing costs, rationalising volumes in the network and maintaining yield growth delivered positive results," Stotlar said. "The emphasis remains on continuous improvement in all areas of the business." The division reported a 5.8% year-on-year revenue increase to $843.3m. This was attributed to an improved yield as a result of higher fuel surcharge revenue.
Menlo Worldwide Logistics, the company’s global logistics and supply chain management operation, sustained its quarterly earnings momentum. It reported revenue of $417.1m, an increase of 12.7% from the prior year third quarter. "Stable customer volumes and good cost controls enabled Menlo to deliver growth in net revenues and profits," Stotlar noted. "We were encouraged as demand for high-value contract logistics and supply chain management services continued to gain traction."
Con-way Truckload recorded gains in revenue, operating efficiencies and income compared to last year’s third quarter. It announced revenue of $158.7m, a 12.8% increase year-on-year and a 43.7% increase in operating income. "Higher asset utilization, increased revenue per mile and lower empty miles contributed to the quarter’s results," Stotlar said. "Overall market demand has been steady and some regions are becoming capacity constrained. Con-way Truckload is maintaining its emphasis on premium service, margin improvement and network efficiency."
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