Con-way reports strong fourth quarter and full-year earnings

Transportation and logistics services provider Con-way Inc. reported solid fourth quarter earnings results today.

Net income of $23.0 million—or $0.41 per share—was well ahead of the fourth quarter of 2010, which was $2.4 million, while revenue—at $1.32 billion—was up 8.7 percent over last year’s $1.21 billion. Operating income—at $49.9 million—was up 68 percent. Earnings per share after

For the full year, Con-way reported that net income at $88.4 million was up significantly over 2010 net income of $4.0 million. And 2011 revenue at roughly $5.3 billion was up about 6 percent annually.

Con-way President and CEO Douglas W. Stotlar said on an investor conference call that the fourth quarter results capped a year of improvement driven by operating discipline in all of Con-way’s core businesses.

Quarterly revenue at Con-way Freight—at $796.2 million—was up 8.2 percent, with yield—or revenue per hundredweight—up 8.3 percent year-over-year—4.3 percent excluding fuel surcharge. Tonnage per day increased 0.8 percent, and operating income of $19.6 million was up compared to $1.8 million last year.

And for the full year revenue for Con-way Freight of $3.2 billion was up about 5 percent.

This increase was mostly the result of improved pricing and fuel surcharge revenue, Stotlar said.

Con-way Freight President Greg Lehmkuhl told LM in an interview that these improved results reflect how a lot of capacity has left the LTL market in the past 24-to-36 months, which has resulted in a “consistent equilibrium now between supply and demand on an aggregate basis…and after a real pricing decline in 2009 and 2010 carriers are more focused on ensuring they are getting cost increases from customers due to the investments they are making into their business.”

Quarterly revenue at Menlo Worldwide, Con-way’s third-party logistics unit—at $408.9 million—was up 11.4 percent, and net revenue of $157.6 million was up 9.6 percent. Menlo’s operating income of $21.3 million was up compared to $6.7 million last year.

Quarterly revenue at Con-way Truckload—at $155.6 million—was up 8.8 percent year-over-year, and Con-way officials said the annual increase was due to higher fuel surcharges and improved revenue per loaded mile. Operating income at Con-way Truckload—at $9.5 million—was up 31.4 percent compared to $7.3 million last year and Con-way said this gain was due to improved pricing and higher revenue per tractor.