Con-way expects Q4 2013 diluted earnings to roughly equal the US$0.21/share earnings posted in Q4 2012, citing 'unique challenges,' including adverse weather, business volumes well below customer projections
ANN ARBOR, Michigan
January 17, 2014
– Con-way Inc. (CNW) today provided an update on its fourth quarter 2013 operating results.
Commenting on the quarter, Douglas W. Stotlar, Con-way's president and CEO, said, "The month of December presented unique challenges, especially at Con-way Freight and Menlo Worldwide Logistics. This distinct set of issues during the month had a disproportionate impact on the fourth quarter. We do not expect the majority of these issues to impact our operating results going forward."
Con-way Freight, the company's less than truckload unit, had higher-than-expected expense for employee benefits and cargo claims, particularly during December. In addition, operating efficiencies were lower than anticipated, primarily due to adverse weather late in the quarter. These factors reduced earlier assumptions for fourth quarter 2013 operating income, which is now expected to be approximately $23.8 million, a 10 percent increase over the $21.5 million earned in the 2012 fourth quarter.
Menlo Worldwide Logistics
At Menlo Worldwide Logistics, the company's global logistics and supply chain management operation, fourth quarter 2013 results were negatively affected by losses at two new warehousing accounts and a customer bankruptcy. With respect to the warehousing accounts, Menlo incurred higher-than-anticipated operating expense, particularly in December. This was mostly due to business volumes that fell well below customer projections. Menlo has made significant progress recently with these accounts and is working diligently to address remaining issues. The customer bankruptcy resulted in a write-off of accounts receivable. Menlo is now expected to report earnings of approximately $2.7 million for the 2013 fourth quarter, as compared to $8.6 million in the fourth quarter of 2012.
Con-way Truckload, the company's full-truckload operation, achieved a slight increase in operating income for the 2013 fourth quarter, compared to the previous-year period. These results included the effects on operations of severe winter weather in the latter part of December, which reduced productivity.
On a consolidated basis, fourth quarter 2013 earnings per diluted share are expected to approximate that of the $0.21 earned in the prior year's fourth quarter.
"We do not believe that fourth quarter results were indicative of the path we are on, nor do they reflect the overall progress made this year at Con-way Freight," said Stotlar.
"Looking forward, we remain focused on our strategic initiatives that are designed to continuously improve operating efficiency as we position the company for increased profitability and long-term success," he concluded.
Release of Consolidated 2013 Results Set for February 5
Con-way Inc. will release consolidated 2013 fourth-quarter and full-year results after the market close on Wednesday, February 5, 2014 and host a conference call for the investment community at 8:30 am ET on Thursday, February 6, 2014. The call can be accessed by dialing (877) 874-4749 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 www.con-way.com, in the investors section.
An audio replay will be available for two weeks following the call by dialing (855) 859-2056 or (404) 537-3406 (for international callers) and using access code 31372668. An Internet replay and podcast of the presentation will also be available at the Con-way site.
About Con-way Inc. -- Con-way Inc. (CNW) is a $5.6 billion freight transportation and logistics services company headquartered in Ann Arbor, Mich. Con-way delivers industry-leading services through its primary operating companies of Con-way Freight, Con-way Truckload and Menlo Worldwide Logistics. These operating units provide high-performance, day-definite less-than-truckload (LTL), full truckload and multimodal freight transportation, as well as logistics, warehousing and supply chain management services. Con-way also operates a trailer refurbishing and manufacturing company which supplies trailing equipment to the company's trucking fleets. 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 www.con-way.com.