Con-way Inc. on Monday, Jan. 28, reported net income from continuing operations for the fourth quarter of 2007 of $36.9 million, compared with fourth-quarter 2006 net income from continuing operations of $81.8 million.
Con-way said earnings were affected by a before-tax charge from business transformation initiatives at Con-way Freight of $7.7 million for office closures, relocations and severance. Results for the 2006 fourth quarter included a net gain of $41.0 million from the sale of Vector SCM, the company’s former logistics joint venture with General Motors Corp.
Revenue was $1.20 billion, an increase of 20.2 percent from last year’s fourth-quarter revenue of $1.0 billion. Operating income in the 2007 fourth quarter was $70.0 million, down 36.2 percent from $109.8 million earned in the fourth quarter a year ago.
For the full-year 2007, Con-way reported net income from continuing operations (after preferred dividends) of $146.8 million compared with $265.2 million (after preferred dividends) in 2006. The before-tax effect of the restructuring charge at Con-way Freight on 2007 full-year results was $13.2 million. The 2006 full-year results included gains of $47.3 million from the sale of Vector and Con-way Expedite.
Including the effect of discontinued operations, net income to common shareholders for the full-year 2007 was $146.0 million compared to net income to common shareholders in 2006 of $259.0 million.
Revenues for full-year 2007 rose to $4.39 billion from 2006’s revenues of $4.22 billion, a 3.9 percent increase. Operating income was $264.5 million compared with $401.8 million in 2006.
“While a challenging economic environment clearly affected our full-year results, I was encouraged with the improvement in Con-way Freight’s year-over-year operating performance for the quarter,” said Douglas W. Stotlar, president and chief executive officer of San Mateo, Calif.-based Con-way. Stotlar noted that markets for the company’s less-than-truckload and full-truckload services are expected to remain highly competitive throughout 2008.
