Con-way's 2Q Income Slips From Year Ago

Con-way Inc. reported lower net income in the second quarter, on wage increases and modest progress to improve pricing

, the company said in a statement. The company's net income slipped from $31.5 million, or 64 cents a share, in the 2009 quarter, to $13.9 million, or 26 cents a share, in the most recent quarter.

Despite the decrease, revenue gained 23.7 percent from last year, landing at $1.31 billion for the quarter.

Douglas W. Stotlar, Con-way's president and CEO, focused on the company's revenue growth, noting it was driven by seasonally stronger demand and rebounding economic activity. All segments saw revenue up, including Con-way Freight.

"The second quarter saw Con-way Freight's business levels surge to record volumes, resulting in higher variable operating costs," Stotlar said.

Within Con-way Freight, the company's less-than-truckload operation, revenue was up 25.8 percent to $817 million, compared to last year's revenue of $649.3 million. Operating income, which the company says was impacted by higher labor, equipment rental and purchased transportation costs, was down to $17.2 million from $49 million in 2009.

Con-way Truckload, the company's truckload operation, saw revenue grow 1.5 percent to $145.5 million, compared to $143.3 million in 2009. Operating income was $5.1 million, compared to the $6.9 million earned in the 2009 quarter.

Menlo Worldwide Logistics, the company's global logistics and supply chain management unit, reported revenue of $385.8 million, up 17.8 percent from 2009. Operating income was $13 million, a 66.8 percent increase from the $7.8 million earned in the second quarter of 2009.

"We are confident that by redeploying some of the fleet at this inflection point in the demand environment, we will be able to take advantage of higher-margin traffic as supply continues to tighten," Stotler said.