Con-Way 2Q Profit Falls 34% On Lower Volumes, Revenue

  DOW JONES NEWSWIRES 
 

Con-Way Inc.'s (CNW) second-quarter profit dropped 34%, as freight volumes continued their decline and revenue fell across most of the company's businesses.

The company, which had swung to quarterly losses in the past two quarters, said volumes improved sequentially each month in the quarter. Still, Chief Executive Douglas Stotlar said the pricing environment would remain competitive until the market's excess capacity was lowered.

Truckers have reported a steep decline in volume amid the broad economic slump. But the shipping and transportation company is seen as one of the likely benefactors if struggling YRC Worldwide Inc. (YRCW), one of the largest U.S. carriers, were to fall into bankruptcy.

Con-Way reported earnings of $33 million, or 64 cents a share, down from $50.4 million, or $1.02 a share a year earlier. The prior-year quarter's results included a 4-cent gain from discontinued operations.

Revenue dropped 21% to $1.06 billion.

Analysts polled by Thomson Reuters expected earnings of 13 cents on revenue of $1.11 billion.

Con-way's less-than-truckload unit, which carries goods for multiple customers on the same vehicle and its largest business division, reported revenue dropped 23% as tonnage per day fell 7%.

In June, the company's less-than-truckload unit rolled out a new pricing system, saying those shipments wouldn't cost more than a full-truckload shipment, removing many add-on charges.

Revenue fell 13% at the company's global logistics and supply chain management operations.

Shares were down 0.7% to $35.73 after hours. The shares are up by about a third this year.

-By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail]