Trucking and logistics giant Con-way increased net profit 42 percent in the second quarter to $41.8 million as higher yield, better asset utilization and new business across its portfolio pushed revenue up 7.2 percent year-over-year to $1.45 billion.
Revenue growth slowed at all three Con-way operating divisions from the first quarter, when the $5.29 billion company’s overall revenue rose 9.2 percent to $1.37 billion and net profit more than tripled year-over-year to $25.6 million.
A 3.2 percent increase in revenue per hundredweight, or yield, helped push Con-way Freight’s operating profit up 36.5 percent year-over-year to $53.4 million, despite a tonnage increase of only 0.9 percent from year-ago freight levels.
The second-largest U.S. less-than-truckload carrier raised revenue 4.6 percent to $878.5 million. Con-way Freight’s operating ratio, a measure of profitability, dropped to 94.4 from 95.3 a year ago, excluding $3.9 million in property sales.
The $3.2 billion company is the third LTL carrier in the past week to report weak year-over-year volume growth or a decline in volume compared to the same quarter in 2011, another sign U.S. economic growth slowed in the quarter.
Increased freight brokerage volume and gains from warehousing and transportation management services lifted revenue Menlo Worldwide Logistics 13.7 percent to $448 million, with net revenue increasing 10.1 percent to $161.8 million.
Transportation management services and Menlo Worldwide’s international operations contributed to the $1.6 billion logistics division’s operating profit, which increased 4.9 percent to $12.7 million from the 2011 second quarter.
Through higher rates and more efficient use of its truck fleet, Con-way Truckload increased operating profit 41.6 percent to $14.6 million. The Joplin, Mo.-based carrier’s revenue rose 4.8 percent year-over-year to $162.9 million.
The $615 million truckload operator hauled more freight, increasing loaded miles 2.4 percent from a year ago. Revenue per loaded mile or truckload yield, a measure of pricing, rose 3 percent, and the carrier’s operating ratio dropped to 88.3.