Con-way third-quarter profit falls below expectations

Con-way said it earned $13.5 million, or 27 cents per share, during the quarter that ended Sept. 30. That was down from a profit of $38.8 million, or 81 cents per share, during the same period a year earlier.

The Associated Press

11/4/2009

SAN MATEO, Calif. — Trucking company Con-way Inc. said Tuesday its third-quarter profit dropped by nearly two-thirds from a year ago as the recession further hurt demand. The company warned investors that near-term prospects earnings growth were slim.

Con-way said it earned $13.5 million, or 27 cents per share, during the quarter that ended Sept. 30. That was down from a profit of $38.8 million, or 81 cents per share, during the same period a year earlier.

Revenue fell 17.3 percent to $1.13 billion, from $1.37 billion a year earlier.

The company said it would have earned 39 cents per share if not for accounting changes and tax charges.

The adjusted results were below the expectation of analysts surveyed by Thomson Reuters, who were expecting a profit of 52 cents per share on revenue of $1.14 billion.

President and CEO Douglas W. Stotlar said “the business environment continues to present formidable challenges, characterized by weak demand, excess capacity and pricing pressure. We expect these conditions to persist in the near term, diminishing the prospects for earnings growth.”

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

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