Con-way Inc. (CNW, Financial) filed Quarterly Report for the period ended 2009-03-31.
Con-way Inc.is a freight transportation and logistics company with businesses in less-than-truckload and full truckload freight services brokerage logistics warehousing supply chain management and trailer manufacturing. The company and its subsidiaries operate across North America. Con-way?s principal component companies: Con-way Transportation Services Menlo Worldwide and Road Systems operate in regional trucking ground expedite truckload brokerage air freight forwarding regional asset based truckload global logistics management e-commerce fulfillment and trailer manufacturing. The combined components of Con-way today provide the full range of supply chain management services. Con-way has operations on five continents and provides service to essentially every major business address in the United States. Con-way Inc. has a market cap of $1.3 billion; its shares were traded at around $28.15 with a P/E ratio of 19.2 and P/S ratio of 0.2. The dividend yield of Con-way Inc. stocks is 1.5%. Con-way Inc. had an annual average earning growth of 1.2% over the past 10 years.
2009 vs. 2008
-
Change in Selected Operating Statistics
Weight per day -12.4%
Revenue per hundredweight ("yield") -12.1%
Shipments per day ("volume") -12.8%
Weight per shipment +0.4%
Freight's revenue in the first quarter of 2009 decreased 24.7% from the same
period of 2008 due to a 12.4% decrease in weight per day, a 12.1% decrease in
yield and a 1-day decline in the number of working days. The 12.4% decline
in weight per day reflects a 12.8% decrease in shipments per day, partially
offset by a 0.4% increase in weight per shipment. The decline in yield was
due primarily to decreases in fuel surcharges and base freight rates.
Freight volumes and yield reflect the current adverse economic conditions,
excess capacity in the LTL market and a competitive pricing environment.
In the first quarter of 2009, Logistics' revenue declined 7.3% primarily due
to a 10.4% decline in revenue from carrier-management services partially
offset by a 0.7% increase in revenue from warehouse-management services.
Logistics' net revenue in the first quarter of 2009 decreased 0.6% during the
same comparative period, reflecting an 11.2% decline in purchased
transportation costs and an increase in the percentage of revenue derived
from warehouse-management services.
Expenses for rents and leases increased 20.8% due to new leases that were
entered into during 2008. Other operating expenses increased 5.8% due
primarily to the use of professional services, amortization of deferred set-
up costs and an increased provision for uncollectible accounts. Purchased
labor decreased 14.4% as labor levels were adjusted in response to declines
in economic activity and customer needs. Salaries, wages and other employee
benefits decreased 4.3% in the first quarter of 2009 reflecting decreases in
base compensation, incentive compensation and other employee-related costs
(particularly travel costs) that were partially offset by increases in
employee benefits. Base compensation declined 4.2% as labor levels were
adjusted in response to declines in economic activity and customer needs.
Incentive compensation declined 36.0% or $0.8 million based on variations in
incentive-plan provisions and performance relative to incentive-plan targets.
Employee benefits expense increased 9.2% due primarily to costs associated
with Con-way's defined benefit pension plan.
In the first quarter of 2009, Truckload's revenue from external customers
decreased 25.8% reflecting a 10.8% decline in revenue before inter-segment
eliminations and a 38.8% increase in inter-segment eliminations. The 10.8%
decline in revenue before inter-segment eliminations was due primarily to a
62.1% decline in fuel surcharge revenue partially offset by a 4.0% increase
in trucking revenue. Lower fuel surcharge revenue was due primarily to lower
fuel prices in 2009 compared to 2008. The 4.0% increase in trucking revenue
reflects a 6.3% increase in miles partially offset by a 2.2% decline in
revenue per mile. The increase in total miles reflects growth in the tractor
fleet partially offset by a decline in average miles per tractor. The
decline in revenue per mile was a result of difficult economic conditions and
excess capacity in the truckload market.
Excluding the impairment charge, Truckload's operating income in the first
quarter of 2009 declined 79.2% from the first quarter of 2008 due primarily
to the decline in revenue from external customers. Other operating expenses
increased 44.8% due primarily to vehicular self-insurance costs, corporate
allocations and an adjustment to a tax-related receivable. Vehicular self-
insurance costs increased 64.7% due primarily to a single claim in the first
quarter of 2009. Salaries, wages and other employee benefits increased
10.2%, reflecting a 7.3% increase in base compensation and a 33.0% increase
in employee benefits expense. Higher base compensation was due primarily to
increased driver miles. Increased employee benefits expense was due to
payroll taxes, workers' compensation and compensated absences. Maintenance
expenses increased 23.8% due to increases in the number of tractors and the
average age of the tractor fleet. Expense for depreciation and amortization,
which increased 7.7%, was also affected by the increase in the number of
tractors.
Read the The complete ReportCNW is in the portfolios of Richard Aster Jr of Meridian Fund, Richard Aster Jr of Meridian Fund, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Richard Pzena of Pzena Investment Management LLC.
Con-way Inc.is a freight transportation and logistics company with businesses in less-than-truckload and full truckload freight services brokerage logistics warehousing supply chain management and trailer manufacturing. The company and its subsidiaries operate across North America. Con-way?s principal component companies: Con-way Transportation Services Menlo Worldwide and Road Systems operate in regional trucking ground expedite truckload brokerage air freight forwarding regional asset based truckload global logistics management e-commerce fulfillment and trailer manufacturing. The combined components of Con-way today provide the full range of supply chain management services. Con-way has operations on five continents and provides service to essentially every major business address in the United States. Con-way Inc. has a market cap of $1.3 billion; its shares were traded at around $28.15 with a P/E ratio of 19.2 and P/S ratio of 0.2. The dividend yield of Con-way Inc. stocks is 1.5%. Con-way Inc. had an annual average earning growth of 1.2% over the past 10 years.
Highlight of Business Operations:
2009 vs. 2008
-
Change in Selected Operating Statistics
Weight per day -12.4%
Revenue per hundredweight ("yield") -12.1%
Shipments per day ("volume") -12.8%
Weight per shipment +0.4%
Freight's revenue in the first quarter of 2009 decreased 24.7% from the same
period of 2008 due to a 12.4% decrease in weight per day, a 12.1% decrease in
yield and a 1-day decline in the number of working days. The 12.4% decline
in weight per day reflects a 12.8% decrease in shipments per day, partially
offset by a 0.4% increase in weight per shipment. The decline in yield was
due primarily to decreases in fuel surcharges and base freight rates.
Freight volumes and yield reflect the current adverse economic conditions,
excess capacity in the LTL market and a competitive pricing environment.
In the first quarter of 2009, Logistics' revenue declined 7.3% primarily due
to a 10.4% decline in revenue from carrier-management services partially
offset by a 0.7% increase in revenue from warehouse-management services.
Logistics' net revenue in the first quarter of 2009 decreased 0.6% during the
same comparative period, reflecting an 11.2% decline in purchased
transportation costs and an increase in the percentage of revenue derived
from warehouse-management services.
Expenses for rents and leases increased 20.8% due to new leases that were
entered into during 2008. Other operating expenses increased 5.8% due
primarily to the use of professional services, amortization of deferred set-
up costs and an increased provision for uncollectible accounts. Purchased
labor decreased 14.4% as labor levels were adjusted in response to declines
in economic activity and customer needs. Salaries, wages and other employee
benefits decreased 4.3% in the first quarter of 2009 reflecting decreases in
base compensation, incentive compensation and other employee-related costs
(particularly travel costs) that were partially offset by increases in
employee benefits. Base compensation declined 4.2% as labor levels were
adjusted in response to declines in economic activity and customer needs.
Incentive compensation declined 36.0% or $0.8 million based on variations in
incentive-plan provisions and performance relative to incentive-plan targets.
Employee benefits expense increased 9.2% due primarily to costs associated
with Con-way's defined benefit pension plan.
In the first quarter of 2009, Truckload's revenue from external customers
decreased 25.8% reflecting a 10.8% decline in revenue before inter-segment
eliminations and a 38.8% increase in inter-segment eliminations. The 10.8%
decline in revenue before inter-segment eliminations was due primarily to a
62.1% decline in fuel surcharge revenue partially offset by a 4.0% increase
in trucking revenue. Lower fuel surcharge revenue was due primarily to lower
fuel prices in 2009 compared to 2008. The 4.0% increase in trucking revenue
reflects a 6.3% increase in miles partially offset by a 2.2% decline in
revenue per mile. The increase in total miles reflects growth in the tractor
fleet partially offset by a decline in average miles per tractor. The
decline in revenue per mile was a result of difficult economic conditions and
excess capacity in the truckload market.
Excluding the impairment charge, Truckload's operating income in the first
quarter of 2009 declined 79.2% from the first quarter of 2008 due primarily
to the decline in revenue from external customers. Other operating expenses
increased 44.8% due primarily to vehicular self-insurance costs, corporate
allocations and an adjustment to a tax-related receivable. Vehicular self-
insurance costs increased 64.7% due primarily to a single claim in the first
quarter of 2009. Salaries, wages and other employee benefits increased
10.2%, reflecting a 7.3% increase in base compensation and a 33.0% increase
in employee benefits expense. Higher base compensation was due primarily to
increased driver miles. Increased employee benefits expense was due to
payroll taxes, workers' compensation and compensated absences. Maintenance
expenses increased 23.8% due to increases in the number of tractors and the
average age of the tractor fleet. Expense for depreciation and amortization,
which increased 7.7%, was also affected by the increase in the number of
tractors.
Read the The complete ReportCNW is in the portfolios of Richard Aster Jr of Meridian Fund, Richard Aster Jr of Meridian Fund, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Richard Pzena of Pzena Investment Management LLC.
