Con-way increased net profit 21 percent year-over-year in the third quarter to $30.6 million, despite a slight drop in overall revenue from a year ago to $1.4 billion.
The company was buoyed by a strong performance at Con-way Freight, its largest subsidiary and the second-largest stand-alone U.S. less-than-truckload carrier.
Con-way Freight’s third-quarter operating profit rocketed 49.7 percent to $51.6 million, while revenue rose 4.8 percent year-over-year to $899.3 million.
Improved yield or pricing and higher average daily tonnage accounted in part for the increase in LTL revenue, the $5.6 billion company said on Oct. 30.
Con-way Freight is making progress with lane-based pricing and line-haul optimization initiatives, said Douglas W. Stotlar, Con-way president and CEO.
Con-way Truckload faced a tougher freight market. Its profit dropped 20.4 percent to $9 million while revenue increased 1.3 percent to $162.2 million.
Like many of its competitors, the truckload subsidiary faced weak demand and a “challenging rate environment,” as well as higher operating expenses.
“Con-way Truckload is focused on improving its mix of freight and increasing network efficiency,” despite “cost headwinds,” Stotlar said in a statement.
Menlo Worldwide Logistics reported a 25.6 percent drop in profit to $8.2 million as revenue fell 11 percent from the year-ago quarter to $380.5 million.
Several new projects at Menlo Worldwide contributed to an 8.2 percent increase in net revenue but had an adverse impact on operating profit, Stotlar said.