Con-way Inc. (CNW, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $2.08 billion; its shares were traded at around $45.02 with a P/E ratio of 39.8 and P/S ratio of 0.4. The dividend yield of Con-way Inc. stocks is 0.9%. Con-way Inc. had an annual average earning growth of 1.2% over the past 10 years.
33.1% and -2.5%, respectively. In the second quarter and first half of 2008,
the effective tax rates were 39.7% and 39.6%, respectively. Excluding the
effect of various tax adjustments, Con-way\'s second-quarter and year-to-date
effective tax rates in 2009 were 37.0% and 37.9%, respectively, and in 2008
were 39.7% and 39.3%, respectively. The tax adjustments in 2009 relate
primarily to the non-deductible goodwill impairment charge in the first
quarter and discrete tax items, including the reversal of a portion of Con-
way\'s accrued liability for uncertain tax positions.
Freight\'s revenue in the second quarter of 2009 decreased 22.6% from the same
period of 2008 and, in the first half of 2009, decreased 23.6% from the same
prior-year period. Revenue per day decreased 23.1% in the second quarter due
to a 7.0% decline in weight per day and a 17.4% decrease in yield. The 7.0%
decrease in weight per day reflects a 5.4% decline in shipments per day and a
1.6% decrease in weight per shipment. In the first half of 2009, revenue per
day decreased 23.0% as a result of a 9.5% decline in weight per day, a 14.9%
decrease in yield and a 1.5-day decline in the number of working days. The
9.5% decline in weight per day reflects a 9.0% decrease in shipments per day
and a 0.7% decline in weight per shipment. In the second quarter and first
half of 2009, 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 less-than-
truckload market and a competitive pricing environment.
Operating income 7,799 4,954 12,773 11,217
Operating margin on revenue 2.4% 1.3% 2.0% 1.6%
Operating margin on net revenue 6.2% 3.9% 5.1% 4.4%
Salaries, wages and other employee benefits increased 4.9% and 0.2% in the
second quarter and first half of 2009, reflecting increases in incentive
compensation and higher costs for employee benefits, partially offset by
lower expenses for other employee-related costs. In the second quarter,
incentive compensation increased $2.4 million or 104.6% and, in the first
half of 2009, increased $1.5 million or 31.6% based on variations in
performance measures relative to incentive-plan targets. Employee benefits
expense increased 10.2% and 9.8% in the second quarter and first half of
2009, respectively, due primarily to increased expenses related to Con-way\'s
defined benefit pension plan and share-based compensation awards. In
connection with the cost-reduction measures discussed above, Logistics
realized savings of approximately $1.4 million related to reductions in
benefits associated with the defined contribution plan and compensated
absences. Other employee-related costs decreased 36.1% and 34.7% in the
second quarter and first half of 2009, respectively, due primarily to lower
travel costs.
Truckload\'s revenue from external customers in the second quarter of 2009
decreased 34.6% from the same period of 2008, reflecting a 21.1% decline in
revenue before inter-segment eliminations and a 21.1% increase in inter-
segment eliminations. The 21.1% second-quarter decline in revenue before
inter-segment eliminations was due primarily to a 72.3% decline in fuel-
surcharge revenue and a 1.8% decline in freight revenue. The 1.8% decline in
freight revenue reflects a 1.7% decline in revenue per mile and total miles
that were relatively unchanged from the prior year period.
In the first half of 2009, Truckload\'s revenue from external customers
decreased 30.6% from the same prior-year period, reflecting a 16.4% decline
in revenue before inter-segment eliminations and a 28.9% increase in inter-
segment eliminations. The 16.4% first-half decline in revenue before inter-
segment eliminations was due primarily to a 68.3% decline in fuel-surcharge
revenue partially offset by a 0.9% increase in freight revenue. The 0.9%
increase in freight revenue reflects a 3.0% increase in total miles and a 1.9
% decline in revenue per mile.
Read the The complete ReportCNW is in the portfolios of David Einhorn of Greenlight Capital Inc, Richard Aster Jr of Meridian Fund, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Arnold Schneider of Schneider Capital Management, 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 $2.08 billion; its shares were traded at around $45.02 with a P/E ratio of 39.8 and P/S ratio of 0.4. The dividend yield of Con-way Inc. stocks is 0.9%. Con-way Inc. had an annual average earning growth of 1.2% over the past 10 years.
Highlight of Business Operations:
Con-way\'s second-quarter and year-to-date effective tax rates in 2009 were33.1% and -2.5%, respectively. In the second quarter and first half of 2008,
the effective tax rates were 39.7% and 39.6%, respectively. Excluding the
effect of various tax adjustments, Con-way\'s second-quarter and year-to-date
effective tax rates in 2009 were 37.0% and 37.9%, respectively, and in 2008
were 39.7% and 39.3%, respectively. The tax adjustments in 2009 relate
primarily to the non-deductible goodwill impairment charge in the first
quarter and discrete tax items, including the reversal of a portion of Con-
way\'s accrued liability for uncertain tax positions.
Freight\'s revenue in the second quarter of 2009 decreased 22.6% from the same
period of 2008 and, in the first half of 2009, decreased 23.6% from the same
prior-year period. Revenue per day decreased 23.1% in the second quarter due
to a 7.0% decline in weight per day and a 17.4% decrease in yield. The 7.0%
decrease in weight per day reflects a 5.4% decline in shipments per day and a
1.6% decrease in weight per shipment. In the first half of 2009, revenue per
day decreased 23.0% as a result of a 9.5% decline in weight per day, a 14.9%
decrease in yield and a 1.5-day decline in the number of working days. The
9.5% decline in weight per day reflects a 9.0% decrease in shipments per day
and a 0.7% decline in weight per shipment. In the second quarter and first
half of 2009, 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 less-than-
truckload market and a competitive pricing environment.
Operating income 7,799 4,954 12,773 11,217
Operating margin on revenue 2.4% 1.3% 2.0% 1.6%
Operating margin on net revenue 6.2% 3.9% 5.1% 4.4%
Salaries, wages and other employee benefits increased 4.9% and 0.2% in the
second quarter and first half of 2009, reflecting increases in incentive
compensation and higher costs for employee benefits, partially offset by
lower expenses for other employee-related costs. In the second quarter,
incentive compensation increased $2.4 million or 104.6% and, in the first
half of 2009, increased $1.5 million or 31.6% based on variations in
performance measures relative to incentive-plan targets. Employee benefits
expense increased 10.2% and 9.8% in the second quarter and first half of
2009, respectively, due primarily to increased expenses related to Con-way\'s
defined benefit pension plan and share-based compensation awards. In
connection with the cost-reduction measures discussed above, Logistics
realized savings of approximately $1.4 million related to reductions in
benefits associated with the defined contribution plan and compensated
absences. Other employee-related costs decreased 36.1% and 34.7% in the
second quarter and first half of 2009, respectively, due primarily to lower
travel costs.
Truckload\'s revenue from external customers in the second quarter of 2009
decreased 34.6% from the same period of 2008, reflecting a 21.1% decline in
revenue before inter-segment eliminations and a 21.1% increase in inter-
segment eliminations. The 21.1% second-quarter decline in revenue before
inter-segment eliminations was due primarily to a 72.3% decline in fuel-
surcharge revenue and a 1.8% decline in freight revenue. The 1.8% decline in
freight revenue reflects a 1.7% decline in revenue per mile and total miles
that were relatively unchanged from the prior year period.
In the first half of 2009, Truckload\'s revenue from external customers
decreased 30.6% from the same prior-year period, reflecting a 16.4% decline
in revenue before inter-segment eliminations and a 28.9% increase in inter-
segment eliminations. The 16.4% first-half decline in revenue before inter-
segment eliminations was due primarily to a 68.3% decline in fuel-surcharge
revenue partially offset by a 0.9% increase in freight revenue. The 0.9%
increase in freight revenue reflects a 3.0% increase in total miles and a 1.9
% decline in revenue per mile.
Read the The complete ReportCNW is in the portfolios of David Einhorn of Greenlight Capital Inc, Richard Aster Jr of Meridian Fund, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Arnold Schneider of Schneider Capital Management, Richard Pzena of Pzena Investment Management LLC.
