Con-way Inc. announced a modest decline in second-quarter profit Tuesday, July 18, as losses from a now-discontinued business offset sales growth. Net income after paying preferred dividends dipped to $68.9 million from $69.1 million a year ago.
Operating income in the 2006 second quarter was $111.8 million, up 7.4 percent from $104.1 million earned in the second quarter a year ago. Revenue was $1.10 billion, an increase of 7.7 percent over last year’s second-quarter revenue of $1.02 billion.
Con-way Freight and Transportation, the company’s regional trucking operation, posted a 7 percent increase in second-quarter sales. Its Menlo Worldwide logistics business saw revenue rise 9 percent. Con-way closed its domestic air freight forwarding subsidiary in June.
Douglas W. Stotlar, Con-way’s president and chief executive officer, said the San Mateo, Calif.-based company was seeing the results of a concerted effort to improve yields. “Over the past eight months, we conducted a detailed, strategic review of our customer base to bring LTL yields more in line with our premium service offerings,” Stotlar said. “We’ve been successful in this effort, as yields have improved while balanced against modest growth.”
Stotlar noted that the business environment for LTL freight, while competitive, continued to support rational pricing. “We finished the quarter with a typical seasonal increase in volumes,” he said. “Our employees are delivering a consistent, superior service product which is being recognized and embraced by customers. That remains our principal formula for growth and creating increased value for our shareholders.”
