Con-way Inc. Provides Fourth Quarter Update for Con-way Freight
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SAN MATEO, Calif., Jan. 13, 2011 - Con-way Inc. (NYSE: CNW) today provided an update on preliminary operating results for the fourth quarter of 2010 at Con-way Freight.
The company's LTL unit expects to report operating income for the fourth quarter of 2010 of approximately $2 million. Operating income in the quarter was affected by health care costs, which were $11 million higher compared to expense levels in the 2010 third quarter.
"The variance in fourth quarter health care costs was a significant factor in lower operating profits at Con-way Freight," said Douglas W. Stotlar, Con-way president and CEO. "While we're disappointed with these results, we are encouraged by the improvement in pricing and the progress of our operating cost reduction initiatives begun in the third quarter."
"These actions, which have lowered costs in fundamental areas of the business, maintained steady momentum throughout the fourth quarter," Stotlar noted. " However, the magnitude of the increased health care expense outpaced the benefits gained from the reduced operating costs and higher pricing."
Stotlar noted that the company began addressing health care cost issues at mid-year 2010, introducing new health care plan options and benefit package changes. While future health care costs are likely to remain uncertain, these changes, which took effect on January 3, 2011, are intended to help mitigate future health care expense increases.
Con-way Freight also expects to report fourth quarter 2010 revenue of $736 million, up 5.7% from the fourth quarter of last year. Weight per day was down 0.5%, while revenue per hundredweight, excluding the effect of fuel surcharge, was up 4.9%.
Con-way Inc. will release consolidated financial results for the fourth quarter and full year of 2010 after the market close on Wednesday, February 2 and host a conference call for the investment community at 8:30 am EST on Thursday, February 3. The call can be accessed by dialing (866) 264-3634 or ( 706) 643-3632 (for international callers) and is expected to last approximately one hour.
The call will also be available through a live internet webcast at con- way.com, in the investor relations section. An audio replay will be available for two weeks following the call by dialing (800) 642-1687 or (706) 645-9291 ( for international callers) and using access code 33303721. An Internet replay of the presentation will also be available at the Con-way site.
About Con-way Inc.
Con-way Inc. (NYSE: CNW) is a $4.3 billion freight transportation and logistics services company headquartered in San Mateo, Calif. Con-way delivers industry-leading services through its primary operating companies of Con-way Freight, Con-way Truckload and Menlo Worldwide. These operating units provide high-performance, day-definite less-than-truckload (LTL) and full truckload freight transportation, as well as logistics, warehousing and supply chain management services, and trailer manufacturing. Con-way Inc. and its subsidiaries operate from more than 500 locations across North America and in 20 countries. For more information about Con-way, visit con-way.com.
Amber
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