Con-way Inc. on Tuesday, Oct. 23, reported net income available to common shareholders for the third quarter of 2007 of $37.3 million. The results compared with third-quarter 2006 net income available to common shareholders of $63.0 million.
Earnings for the 2007 third quarter were affected by restructuring costs related to acquisition and business transformation initiatives conducted in the quarter, which totaled $7.0 million. Results for the 2006 third quarter included a gain from the sale of a subsidiary of $6.2 million, and the effect of discrete tax items which reduced the tax provision in the quarter by $2.9 million.
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 Chief Executive Officer Douglas W. Stotlar noted that soft customer shipping volumes continued to be a challenge for the highly competitive less-than-truckload 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,” Stotlar said. “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.”
The quarter saw Menlo Worldwide complete the acquisition of Singapore-based Cougar Holdings, increasing its market share and footprint in South Asia and Singapore as well as extending it into new vertical markets. “In addition to successfully executing on its acquisition strategy, Menlo made excellent progress in the quarter toward its business goals, improving operational metrics and securing major new project wins,” Stotlar said. “Our logistics unit is on track to achieve double-digit growth in net revenues and margins for the year.”
On Oct. 17, Menlo Worldwide also completed its previously announced acquisition of Chic Holdings of Shanghai, China, which extends the company into China’s domestic transportation and logistics management market.
