Con-way Inc. on Wednesday, Feb. 2, reported net income for the fourth quarter of 2010 of $2.4 million compared to a fourth-quarter 2009 net loss of $1.9 million. Revenue was $1.21 billion, an 8.7 percent increase. Operating income was $15.8 million compared to $17.3 million.
For the full-year 2010, Con-way reported net income of $4.0 million compared to a full-year 2009 net loss of $110.9 million. Revenue was $4.95 billion, a 16.0 percent increase. Operating income of $78.2 million was improved from an operating loss of $25.9 million.
“Con-way’s principal business units managed through an unsettled economy in 2010, concluding the year with solid operating discipline,” said Douglas Stotlar, president and chief executive officer of the Ann Arbor, Mich.-based company. In the fourth quarter, Con-way Freight, the company’s less-than-truckload unit, reported improved yield as a combination of pricing actions and proactive account management increased revenue per hundredweight, and helped maintain network volumes at more efficient levels. Tonnage per day was essentially flat compared to the previous-year fourth quarter.
“We were disappointed with Con-way Freight’s fourth-quarter profits, which were affected by a spike in health care costs,” Stotlar said. “That issue aside, we were encouraged with results of our operating cost-reduction initiatives begun last August. In less than five months, we’ve reversed the negative trajectory in primary operating cost and efficiency metrics, which are returning to historical norms. As we move into 2011, our focus will be on vigilant cost control, network efficiency and yield management.”
Menlo Worldwide Logistics reported a solid fourth quarter, successfully navigating a changing market for outsourced logistics services. “Menlo completed a commendable year, executing well against its plan, managing costs and exceeding customer goals,” Stotlar said. “Headed into 2011, Menlo remains well positioned in its markets with a global footprint and service portfolio that is aligned with customer needs.”
In the fourth quarter, Con-way Truckload reported improved key operating and productivity measures compared to the third quarter. A fourth-quarter income decline compared to 2009 was attributed in part to lower total miles, which led to a decline in tractor productivity and reflected changes in fleet composition that had fewer higher-mileage driver teams and proportionally more single driver trucks.
