The Silver Lining’s Name is Con-Way

Oct. 25, 2004
Con-Way Transportation Services has reported strong third-quarter earnings, compared to the spotty financials posted by its parent company, CNF Inc.

Con-Way Transportation Services has reported strong third-quarter earnings, compared to the spotty financials posted by its parent company, CNF Inc.

CNF Inc. posted a net loss to common shareholders in the third quarter of $216.2 million, compared with a net income of $24.8 million in the same period last year. The planned sale of Menlo Worldwide Forwarding resulted in a $260.5 million after-tax impairment charge, which dealt a severe blow to the company’s bottom line.

On October 5, CNF announced an agreement to sell its Menlo Worldwide Forwarding unit to UPS for $150 million in cash and the assumption of $110 million in debt. This transaction excludes CNF’s Menlo Worldwide Logistics, Vector SCM, Con-Way Transportation Services and Road Systems subsidiaries.

For the first none months of 2004, CNF reported a net loss to common shareholders of $156.3 million, compared with a net income of $57 million in the same period last year.

However, there is a bright spot in CNF’s earnings report, most notably from its freight subsidiary Con-Way Transportation Services.

“Con-Way in particular has strong results with 19% growth in revenue and a 31% increase in operating income (compared with the same period last year),” said CNF chairman & CEO W. Keith Kennedy.

Operating income (earnings before interest payments and income taxes) was $70.6 million, while revenue was $684.8.

The regional carrier saw a 13.8% increase in tonnage per day, while yield increased 3.5% compared to the same period last year.

Menlo Worldwide reported an operating income of $8.5 million, a 45% reduction over the same period last year.

Menlo Worldwide Logistics said its operating income fell 11% to $5.8 million over last year’s third quarter.

Menlo Worldwide Other, which consists of Vector SCM, reported operating income of $2.7 million, a 69% reduction over the same period last year.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Boost truck leasing profits with telematics insights! Reduce maintenance costs, improve uptime, and strengthen customer relationships. Learn how data drives success.
This free guide outlines simple steps for hiring and onboarding commercial drivers while ensuring that you meet Regulation Part 391 and maintain fully compliant driver qualification...
Ready to boost fleet efficiency by up to 50%? Learn how AI-powered dispatch and next-gen tech are transforming TMS workflows, improving driver planning, and streamlining operations...
Gain a strategic edge in today’s evolving fleet landscape. Join us to explore how fuel cards are helping fleet managers cut costs, enhance control, and prepare for an electrified...