William B. Cassidy | Aug 04, 2011 5:40PM EDT
Con-way increased its net profit 111 percent to $29.4 million in the second quarter, as the company’s revenue increased 3.2 percent to $1.35 billion.
The transportation giant’s net profit rocketed more than 300 percent from the first quarter, when it earned $6.9 million on $1.3 billion in revenue.
The company’s less-than-truckload operating profit soared 127.3 percent to $39.2 million, as Con-way Freight’s revenue rose 2.8 percent to $839.8 million. The LTL operation’s revenue per hundredweight, or yield, rose 11.2 percent from a year ago. Excluding fuel surcharges, yield was up 6 percent, reflecting higher rates.
The LTL company cut tonnage per day 8.3 percent as it continued to cull unprofitable freight from its system and improved network efficiency.
Con-way Truckload’s operating profit shot up 101.1 percent to $10.3 million, as its sales increased 6.9 percent to $155.5 million, despite a close brush with a tornado. The company’s revenue per loaded mile, or truckload yield, increased 4.2 percent.
Operating profit at Menlo Worldwide Logistics dropped 7 percent to $12.1 million, as start-up costs from new contracts cut into margins in its warehousing business. Menlo’s revenue increased 2.1 percent from a year ago to $394 million.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc