Con-way announced on Monday, Jan. 29, that its quarterly net profit rose, citing the sale of a business unit that made up for what the trucking and logistics company described as a “slack economy.”
“Our financial performance in 2006 was not up to the standards our shareholders and employees have come to expect,” said Douglas Stotlar, chief executive officer of San Mateo, Calif.-based Con-way. Stotlar said this would be a catalyst for change in how Con-way does business; the company said from now on it will only provide a full-year outlook that will be updated quarterly.
The company reported fourth-quarter net income of $84.2 million, compared with $53.2 million a year earlier; the company’s fourth-quarter results include a net gain of $41 million from the sale of Vector SCM LLC, a logistics joint venture with car manufacturer General Motors Corp. Con-way reported fourth-quarter revenue of $998.6 million, compared with $1.07 billion a year earlier.
For the full year, Con-way reported net income from continuing operations of $265.2 million, compared with $222.6 million in 2005. Revenues for 2006 rose to $4.22 billion, a 2.6 percent increase over 2005’s revenues of $4.12 billion.