Con-way Loses $154 million in First Quarter

Transportation and logistics giant Con-way lost $154 million in the first quarter, including a goodwill impairment charge of $134.8 million, as a result of intense price competition and plummeting demand.

The weak economy caused a decline in truckload market value in the quarter and triggered the impairment charge at Con-way Truckload, formerly Contract Freighters, which Con-way bought in 2007.

Revenue of $962.9 million for the quarter was down 19.9 percent from first quarter 2008. Con-way posted an operating loss of $150.3 million during the period -- $15.5 million after accounting for the goodwill write down. This compared to operating income of $54 million during the same period a year ago.

Con-way President and CEO Douglas W. Stotlar said while the company posted losses in the first two months of the quarter, the carrier, which specializes in less-than-than truckload freight, returned to profitability in March as a result of a seasonal upturn in business and market share gains.

“There are some signs that our freight volumes may be nearing a bottom,” Stotlar said. “However, feedback from our customers as well as trend data for industrial output and inventory levels indicate that shipping volumes are likely to remain restrained, certainly for the short term.”

Contact John Gallagher at jgallagher@joc.com .