Amid continued weak demand, excess capacity and pricing pressure, Con-way saw its net income drop to $13.5 million, or 27 cents a share, in the third quarter, versus $38.8 million, or 81 cents a share, in the year-ago quarter.

The California-based diversified transportation company attributes the decrease to a change in accounting estimate related to revenue adjustments at Con-way Freight and a charge for certain discrete tax items.

The company saw revenue fall to $1.13 billion, down from last year's third-quarter revenue of $1.37 billion.

"Our operating companies have adjusted to the resetting economy," said Douglas Stotlar, president and CEO. "Overall, the business environment continues to present formidable challenges, characterized by weak demand, excess capacity and pricing pressure. We expect these conditions to persist in the near term, diminishing the prospects for earnings growth."

Con-way Freight, the company's less-than-truckload operation, also experienced a weaker quarter than the third quarter of 2008, with revenue dropping about 14.3 percent and income falling 62.7 percent. The company attributes the loss in profitability to lower pricing driven by overcapacity in the LTL market. Tonnage per day saw a 5.1 percent boost over the 2008 quarter, while yield was down 19.4 percent.

"We made a strategic decision, implemented over the past two quarters, to improve network utilization and we met this objective," said Stotlar. "Profits were constrained due to pricing levels, higher variable operating costs associated with the tonnage growth and lower fuel surcharge revenues. While pricing is likely to remain under pressure, we believe the increased network volumes put us in a better position competitively; we are now instituting specific measures to improve operating efficiency."

The company's truckload unit saw its operating income fall 30.1 percent from the year-ago period. Revenue was $95.7 million, compared to $140.9 million in the third quarter of 2008.