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Con-way Inc. (NYSE:CNW) recently reported net income to common shareholders for the second quarter of 2009 of $31.5 million (after preferred stock dividends), or 64 cents per diluted share. The results compared to second-quarter 2008 net income to common shareholders (after preferred stock dividends) of $48.7 million, or $1.02 per diluted share. The 2008 second-quarter net income included a net gain from discontinued operations of 4 cents per diluted share. Revenue in the 2009 second quarter was $1.06 billion, a decrease of 21.2 percent from last year’s revenue of $1.34 billion. Operating income in the 2009 second quarter was $66.0 million, a decrease of 30.5 percent compared to $94.9 million earned in the second quarter a year ago.
Commenting on the quarter, Con-way President and CEO Douglas W. Stotlar said, “Despite the challenges of the recessionary economy and a weak freight market, we returned the company to profitability. These results are a testament to the solid execution by Con-way’s employees at all of our business units, and the benefit of cost-reduction measures implemented in April.” Con-way Freight, the company’s less-than-truckload (LTL) unit, saw its volumes improve sequentially each month in the quarter. “Con-way Freight’s reliable service performance, coupled with successful sales execution is driving an uptick in market share,” he said. “While there was some benefit from normal seasonality, the consistent month-to-month sequential growth was an encouraging trend. However, until the market’s excess capacity is resolved, we expect the pricing environment to remain competitive.”
Menlo Worldwide Logistics delivered a solid quarter. “Recessionary times provide opportunities for logistics companies, and Menlo has done a good job helping its customers weather the downturn,” Stotlar said. “Menlo’s quarterly performance can be attributed to new contract wins, continued operational excellence and prudent cost management.”
Con-way Truckload continued to manage effectively through a difficult market for full-truckload services. “The volume of shipper bid activity moderated from what we saw in the first quarter but weak demand and over-capacity kept pricing under pressure,” Stotlar noted. “Our truckload unit took steps in the quarter to right-size its fleet, selling 195 older tractors and aligning its resource base closer to market demand. Con-way Truckload remains well positioned as a premium service provider with sound operations, a loyal customer base and excellent cost controls.”
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