DOW JONES NEWSWIRES
Con-way Inc. (CNW) swung to a fourth-quarter net loss, a move
Chief Executive Douglas Stotlar said was tied to an unprecedented
drop in freight business volumes.
Stotlar said the deteriorating economy in the fourth quarter
foreshadowed an "extraordinary decline" in demand for freight
services that accelerated through November and December.
Con-way also declined to offer an outlook for 2009, citing the
uncertainty in the global economy and the lack of visibility into
future business volumes.
The shipping and transportation company reported a net loss of
$41.3 million, or 94 cents a share, compared with year-earlier net
income of $36.3 million, or 73 cents a share.
Excluding $1.19 in charges for restructuring, goodwill
impairment and other items, earnings from continuing operations
dropped to 10 cents a share from 88 cents.
Con-way had said it would take an impairment charge of $30
million to $35 million on its investment in Chich Holdings Ltd., a
Shanghai-based transportation and logistics company.
Revenue dropped 6.2% to $1.13 billion.
Analysts polled by Thomson Reuters projected a per-share loss of
3 cents on revenue of $1.17 billion.
Con-way Freight, the company's less-than-truckload unit and its
largest business division, reported revenue decreased 13% as
tonnage per day and yields declined. Industry observers have said
the deepening recession and challenging fundamentals have hurt the
segment, in which carriers consolidate loads from multiple shippers
into a single truckload.
Menlo Worldwide Logistics, the company's logistics and supply
chain management operations, recorded a 9.7% jump in revenue.
Con-way's full-truckload transportation operations segment reported
revenue fell 6.3%.
Industry analysts expect 2009 to be one of the worst years for
freight-transportation volume in three decades or more, as weak
consumer spending has prompted retailers and other businesses to
delay or reduce orders.
In reaction to the economic conditions, Con-way Freight last
month cut its work force by 8% and close 40 service center
locations, as it focused on cost reductions to mitigate pricing
pressures and lower fuel surcharges.
Shares were up 0.9% to $20.45 in after-hours trading, after
closing down 4% in the regular session, off nearly two-thirds from
a 52-week high in August.
-By John Kell and Lauren Pollock, Dow Jones Newswires;
201-938-5285; john.kell@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary. You can use this link on the day this article is
published and the following day.