The truckload freight and logistics provider reported an 18.1 percent decrease in net income to $44 million in the second quarter of 2015 compared to last year’s second quarter.
Con-way Inc.’s net income reached $44 million in the second quarter of 2015, down 18.1 percent from $53.7 million in the second quarter of 2014, according to the company’s most recent unaudited financial statements.
The truckload freight and logistics provider decreased diluted earnings per share from 93 cents per diluted share to 76 cents per diluted share.
Operating income for the second quarter stood at $84 million, up 18.2 percent from last year’s second quarter operating income of $102.7 million.
Total revenues for the second quarter stood at $1.43 billion, a 4.4 percent drop from the second quarter of 2014.
The company’s freight sector reported revenues of $916.9 million for the second quarter, a 2.5 percent decrease from the prior year, primarily as a result of a drop in fuel surcharges and lower tonnage, which were partially offset by improved pricing. Con-way Freight reported $69.5 million in operating income, down 16.3 percent from the second quarter of 2014, primarily resulting from higher driver wages and benefits and an $8.3 million increase in vehicular claims expenses.
The company’s third-party logistics subsidiary, Menlo Logistics, reported revenues of $405.9 million, a 6.4 percent decrease from the prior year’s second quarter. Con-way primarily attributed the decrease to the drop in fuel surcharge revenues and the result of customer-directed changes in operations. Menlo Logistics had $8 million in operating income, an increase of 24.7 percent from the second quarter of 2014, primarily from better pricing and strong cost controls.
“Menlo has secured several wins this year and has a strong prospect pipeline,” President and CEO Douglas W. Stotlar said in a statement. “New projects now moving through start-up are expected to begin revenue and profit contribution early next year.”
Con-way Truckload had revenues of $142.7 for the second quarter, down 13 percent from the previous year, due to the drop in fuel surcharge revenues and less total loaded miles, which were slightly offset by increased base rates. The operating income for Con-way Truckload took a sharp drop of 31 percent to $9.3 million, mainly as a result of increased driver pay-per-mile and lower asset utilization.
“We made consistent progress during the quarter increasing the number of seated tractors in the fleet, however, the market for new drivers remains challenging,” said Stotlar. “As we continue to improve asset utilization and complete annual rate negotiations with customers, we expect Con-way Truckload’s performance to improve.”
Con-way Inc. profits fall 18.1%
