William B. Cassidy | Feb 02, 2011 6:35PM EST
Transportation and logistics operator Con-way returned to the black in 2010, reporting a $4 million profit for the year compared with a $110.9 million loss in 2009.
But the company’s less-than-truckload unit continues to struggle with pricing and operating costs, as seen in its quarterly and annual drop in operating income.
“As we move into 2011, our focus will be on vigilant cost control, network efficiency and yield management,” said President and CEO Douglas W. Stotlar.
For the full year, Con-way’s total revenue rose 16 percent year-over-year to $4.95 billion.
Con-way was the sixth largest U.S. trucking operator and third largest less-than-truckload carrier in 2009, according to SJ Consulting Group and The Journal of Commerce.
Con-way Freight’s fourth-quarter profits were affected by higher health care costs, the company said, dropping 35.7 percent from a year ago to $1.8 million.
That was lower than the $2 million the company said it anticipated last month, when it warned an $11 million spike in health care costs would push down its profit.
The LTL carrier’s revenue rose 5.7 percent to $736 million in the fourth quarter, and yield increased 4.9 percent, excluding fuel surcharges, the company said.
For the full year, Con-way Freight’s operating income fell 44 percent to $28.9 million, compared with a $51.3 million operating profit in 2009.
Its revenue rose 17.2 percent from $2.6 billion in 2009 to $3.1 billion last year.
Con-way Truckload came back into the black, posting a $20.8 million operating profit for the year compared with a $107 million operating loss in 2009.
The Joplin, Mo.-based truckload carrier’s operating profit slipped 11.5 percent year-over-year in the fourth quarter, however, falling to $7.3 million. That decrease occurred as revenue grew 2.3 percent, rising to $143 million.
Revenue at Con-way’s Menlo Worldwide Logistics subsidiary climbed 7.5 percent to $367 million in the fourth quarter and 11 percent for the full year to $1.5 billion.
Menlo’s operating income rose 13 percent in the quarter to $6.7 million but dropped 6.9 percent for the year from $28.2 million in 2009 to $26.3 million.
Contact William B. Cassidy at wcassidy@joc.com
