Con-way Inc. reported 2013 second-quarter net income of $42.9 million, or 75 cents per diluted share. The results compare to second-quarter 2012 net income of $41.8 million, or 74 cents per diluted share.
Operating income in the second quarter was $76.3 million compared to $80.1 million earned in the second quarter a year ago. Revenue for the second quarter was $1.38 billion compared to $1.45 billion a year ago.
The company's performance benefited from better results at Con-way Freight, which continued to make progress with its strategic improvement initiatives, while Menlo Worldwide Logistics and Con-way Truckload had cost headwinds which reduced profit levels at both units compared to last year.
Menlo Worldwide Logistics, the company's global logistics and supply chain management operation, reported lower revenues while net revenues were flat and operating income declined.
Con-way Truckload, the company's full-truckload transportation operation, reported a decline in operating income on flat revenues for the quarter.
Con-way's second-quarter effective tax rate was 31.7%, compared to 35.4% for the same period in 2012. Both years included discrete tax adjustments that benefited the effective tax rate (presented in the attached reconciliation). The second-quarter discrete tax adjustments consisted primarily of the reversal of liabilities for uncertain tax positions.
Segment results in the second quarter for Con-way's principal operations were as follows:
For the second quarter of 2013, Con-way Freight reported:
-- Revenue of $892.3 million, a 1.6% increase from last year's second quarter revenue of $878.5 million. Revenue in the quarter benefited from improved yield partially offset by lower average daily tonnage.
-- Operating income of $54.7 million, a 2.4% increase from the $53.4 million earned in the year-ago period. Last year's second quarter results included a $3.9 million gain from the sale of excess properties.
-- Revenue per hundredweight, or yield, increased 2.7% from the previous-year second quarter. Excluding fuel surcharge, yield rose 3.3%.
-- Tonnage per day declined 1.4% compared to the 2012 second quarter.
-- Operating ratio of 93.9 in the 2013 second quarter was unchanged from the previous-year period. Excluding the gain from the sale of excess properties, the operating ratio in the 2012 second quarter was 94.4.
For the second quarter of 2013, Con-way Truckload reported:
-- Revenue of $161.8 million, compared to last year's second-quarter
revenue of $162.9 million. Results were affected by lower fuel-surcharge revenues and a 1% decline in loaded miles, partially offset by a 1.6% increase in revenue per loaded mile.
-- Operating income of $10.9 million, which was affected by higher expense for vehicular claims, depreciation and amortization, and the impact of engine emissions-systems maintenance. Operating income in the prior-year period was $14.6 million.
-- Empty miles of 9.4%, compared to 9.2% in the previous-year second quarter.
-- Operating ratio exclusive of fuel surcharges of 91.4, compared to 88.3 in the second quarter of 2012.