Con-way Inc. reported net income available to common shareholders for the third quarter of 2007 of $37.3 million, or 78 cents per diluted share. The results compared with third-quarter
2006 net income available to common shareholders of $63.0 million, or $1.24 per diluted share.
Earnings available to common shareholders for the 2007 third quarter were affected by restructuring costs related to acquisition and business transformation initiatives conducted in the quarter, which totaled $7 million, or 9 cents per diluted share. Results for the 2006 third quarter included a gain from the sale of a subsidiary of $6.2 million, or 8 cents per diluted share, and the effect of discrete tax items which reduced the tax provision in the quarter by $2.9 million, adding 6 cents per diluted share to the 2006 third quarter.
Revenue was $1.11 billion, an increase of 3.2 percent from last year's third-quarter revenue of $1.08 billion. Operating income in the 2007 third quarter was $67.7 million, down 33.8 percent from $102.3 million earned in the third quarter a year ago.
Commenting on the results, Con-way President and CEO Douglas W. Stotlar noted that soft customer shipping volumes continued to be a challenge for the highly competitive less-than-truckload (LTL) market, where Con-way Freight recorded a modest increase in tonnage for the quarter. "While we are encouraged with customer response to Con-way Freight's growth initiatives, the market continues to be very price sensitive. Tonnage per day had a respectable gain over last year's third quarter; however, yields remain under pressure, a market dynamic that we expect will continue to dampen profit growth in LTL freight through the remainder of the year."