William B. Cassidy, Senior Editor | Nov 03, 2011 5:39PM EDT
Steady freight demand in less-than-truckload and truckload markets boosted Con-way’s total revenue 8.4 percent in the third quarter to $1.38 billion.
Improved yield and better cost and freight volume management produced a $29.1 million net profit compared with a year ago loss of $8.2 million. That’s roughly equivalent to its second quarter performance, when Ann Arbor, Mich.-based Con-way had a $29.4 million net profit on $1.35 billion in revenue.
Excluding fuel surcharges, Con-way Freight’s LTL yield rose 6.7 percent, helping to power a 211 percent increase in the LTL unit’s operating profit to $40.7 million. The second-largest LTL carrier continued trimming unprofitable freight, reducing tonnage per day 5.5 percent, said Douglas W. Stotlar, Con-way president and CEO.
“Con-way Freight’s continued focus on managing costs, rationalizing volumes in the network and maintaining yield growth delivered positive results, “ said Stotlar.
Con-way Truckload increased revenue 12.8 percent year-over-year to $158.7 million, boosting its quarterly operating profit 43.7 percent to $7.9 million. Truckload yield, measured in revenue per loaded mile, rose 4.2 percent excluding fuel surcharges, indicating higher rates as well as better truck utilization.
The Joplin, Mo.-based truckload carrier raised its rates and reduced empty miles traveled to 9.5 percent of total miles compared with 10.8 percent a year ago.
Con-way’s Menlo Worldwide Logistics division increased its total sales 12.7 percent to $417.1 million and net revenue 9.9 percent to $154.7 million. Menlo had an operating profit of $12.7 million compared with a $6.3 million loss a year ago.
A complete earnings report and financial statistics will be available here later Thursday.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
