Con-way Inc. is closing down its domestic air freight forwarding subsidiary, Con-way Forwarding.
Douglas Stotlar, Con-way’s president & CEO, noted that Con-way expects to take a charge in the second quarter of approximately $8 million in connection with shutting down Con-way Forwarding, primarily reflecting the write-off of certain non-transferable assets, severance costs and lease expense. However, the closure is not expected to have a material impact on revenues, he added.
Con-way entered the air forwarding business in April 2001 with the creation of Con-Way Air Express – a move Gerald Detter, then-president of Con-way’s LTL operations, thought would dovetail with its ground-based express transportation offerings. The company expanded its air forwarding reach to Canada in 2002. Yet following the reorganization of Con-way this year, its air forwarding subsidiary didn’t fit the company’s new focus on the surface freight market.
“Our core businesses are high-performance surface freight transportation and global contract logistics,” Stotlar said. “We believe that focusing our investments on these key segments is the right strategy for our enterprise and our investors, and offers the best opportunity for sustainable growth in revenues, profits and shareholder value.”
