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Con-way Reports Improved Quarterly, Full-Year Results

February 02, 2011

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Con-way Inc. reported net income for the fourth quarter of 2010 of $2.4 million, or 4 cents per diluted share. The results compare to a fourth-quarter 2009 net loss of $1.9 million, or 4 cents per diluted share.


Revenue for the 2010 fourth quarter was $1.21 billion, an 8.7 percent increase from last year's fourth quarter. Operating income in the 2010 fourth quarter was $15.8 million compared to $17.3 million in the fourth quarter a year ago.

For the full-year 2010, Con-way reported net income of $4 million, or 7 cents per diluted share. This compares to a full-year 2009 net loss to common shareholders of $110.9 million, or $2.33 per diluted share.

Revenue for the full-year 2010 was $4.95 billion, a 16 percent increase from 2009. Operating income of $78.2 million in 2010 was improved from the operating loss of $25.9 million in 2009, with both periods affected by the special items described above.

"Con-way's principal business units managed through an unsettled economy in 2010, concluding the year with solid operating discipline," said Douglas W. Stotlar, Con-way president and CEO.

In the fourth quarter, Con-way Freight, the company's less-than-truckload unit, saw yield improve as a combination of pricing actions and proactive account management increased revenue per hundredweight, and helped maintain network volumes at more efficient levels.

"We were disappointed with Con-way Freight's fourth quarter profits, which were affected by a spike in health care costs. That issue aside, we were encouraged with results of our operating cost reduction initiatives begun last August," Stotlar noted. "In less than five months, we've reversed the negative trajectory in primary operating cost and efficiency metrics, which are returning to historical norms. As we move into 2011, our focus will be on vigilant cost control, network efficiency and yield management."

Menlo Worldwide Logistics turned in a solid fourth quarter, successfully navigating a changing market for outsourced logistics services. "Menlo completed a commendable year, executing well against its plan, managing costs and exceeding customer goals," Stotlar said. He added that headed into 2011, "Menlo remains well positioned in its markets with a global footprint and service portfolio that is aligned with customer needs."

In the fourth quarter, Con-way Truckload saw key operating and productivity measures improve compared to the third quarter. "Our truckload unit operated well, reducing empty miles and increasing average loaded miles in the fourth quarter," said Stotlar. "We have good balance in the network and are well positioned to increase asset utilization as we refine the business mix and expand opportunities for dedicated teams. If the apparent firming of market demand continues, prospects for profitable growth should be encouraging," he concluded.

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