Con-way Boosts Third Quarter Profit to More Than $30 Million
October 30, 2013
The parent to trucking operations Con-way Freight, Con-way Truckload and Menlo Worldwide Logistics, Con-way Inc. has reported 2013 third-quarter net income of $30.6 million, compared to third-quarter 2012 net income of $25.3 million.
Operating income for the Michigan-based operation in the third quarter was $67.7 million, a 22.6% increase from the $55.2 million earned in the third quarter a year ago. Revenue for the third quarter in both years was $1.4 billion.
For the third quarter of 2013, less-than-truckload operation, Con-way Freight, reported revenue of $899.3 million, a 4.8% increase from last year’s third-quarter revenue of $858.3 million, partially due higher average daily tonnage.
“Our less-than-truckload company is consistently executing against its current initiatives of lane-based pricing and line-haul optimization, both of which are on track and delivering expected results,” said Douglas Stotlar, Con-way’s president and CEO “As we continue to invest in and deploy the next stages of our plans, we expect further improvement.”
Menlo Worldwide Logistics reported revenue of $380.5 million, down 11% from the prior-year third-quarter revenue of $427.8 million.
“Menlo is implementing several large new projects, which have contributed to growth in net revenue while also having an adverse impact on operating income,” Stotlar said. “As these projects become fully operational, we expect their negative impact on operating income to subside. Despite the expected margin improvement from these projects, increased employee costs and information technology investments may constrain Menlo’s income growth next year.”
Con-way Truckload reported revenue of $162.2 million, a 1.3% increase compared to last year’s third-quarter revenue of $160.1 million.
Con-way Truckload recorded a slight increase in revenue for the third quarter while operating income declined, reflecting a weak demand environment and cost headwinds. “Con-way Truckload is focused on improving its mix of freight and increasing network efficiency.” said Stotlar.
More financial details, including the company’s results for the first nine months of the year, are on the Con-way website.