Con-way Income Falls 7.9%
May 01, 2014
Trucking company parent Con-way Inc. has reported 2014 first quarter net income of $12.9 million, or 22 cents per diluted share, compared to first quarter 2013 net income of $14 million, or 25 cents per diluted share, a 7.9% decline.
Revenue for the first quarter was $1.37 billion up from $1.34 billion a year ago.
“The harsh weather clearly impacted our first quarter results. However, we exited the quarter in a strong demand environment with improving operating fundamentals,” said Douglas W. Stotlar, Con-way’s president and CEO.
For the first quarter of 2014, Con-way Freight, the company’s less-than-truckload operation, reported revenue of $848 million, a 2.5% increase over last year’s first quarter revenue.
Operating income was $18.6 million, a 15.9% increase from the year-ago period. The severe winter weather negatively affected operating income by an estimated $18 million, according to the company
Revenue per hundredweight, increased 1% from the previous-year first quarter, while tonnage per day increased 0.3%.
Menlo Worldwide Logistics, the company’s global logistics and supply chain management operation, reported first quarter revenue of $406.4 million, up 3.6%.
Net revenue was $182.5 million, a 16.1% increase, with operating income of $6.2 million, compared to last year’s first quarter operating income of $6.5 million.
Conway Truckload reported revenue of $156 million, compared to last year’s first-quarter revenue of $157 million. “Lower revenue included the effects of a 1.1% decline in loaded miles partially offset by a 0.4% increase in revenue per loaded mile, excluding fuel surcharge,” the company said.
Operating income was $6.4 million, down from the $10 million earned in the previous-year period. Severe winter weather impacted 2014 first-quarter operating income by an estimated $2 million, according to the company.
Empty miles were 10% compared to 9.7% in the previous-year first quarter.
“The difficult operating environment impacted efficiency, maintenance, fuel cost and asset utilization at Con-way Truckload,” Stotlar said. “However, as the quarter concluded, operations began to normalize, demand improved and the pricing environment strengthened. At the same time, driver retention and recruiting continues to be challenging.”
You can find more details on the Con-way website.