DOW JONES NEWSWIRES
Con-Way Inc.'s (CNW) second-quarter profit dropped 34%, as
freight volumes continued their decline and revenue fell across
most of the company's businesses.
The company, which had swung to quarterly losses in the past two
quarters, said volumes improved sequentially each month in the
quarter. Still, Chief Executive Douglas Stotlar said the pricing
environment would remain competitive until the market's excess
capacity was lowered.
Truckers have reported a steep decline in volume amid the broad
economic slump. But the shipping and transportation company is seen
as one of the likely benefactors if struggling YRC Worldwide Inc.
(YRCW), one of the largest U.S. carriers, were to fall into
bankruptcy.
Con-Way reported earnings of $33 million, or 64 cents a share,
down from $50.4 million, or $1.02 a share a year earlier. The
prior-year quarter's results included a 4-cent gain from
discontinued operations.
Revenue dropped 21% to $1.06 billion.
Analysts polled by Thomson Reuters expected earnings of 13 cents
on revenue of $1.11 billion.
Con-way's less-than-truckload unit, which carries goods for
multiple customers on the same vehicle and its largest business
division, reported revenue dropped 23% as tonnage per day fell
7%.
In June, the company's less-than-truckload unit rolled out a new
pricing system, saying those shipments wouldn't cost more than a
full-truckload shipment, removing many add-on charges.
Revenue fell 13% at the company's global logistics and supply
chain management operations.
Shares were down 0.7% to $35.73 after hours. The shares are up
by about a third this year.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com