Con-way Profits Up On Tight Margins

Con-way Inc. reported net income from continuing operations for the first quarter of 2006 were $45.5 million, up 17%. Quarterly revenues for trucking and logistics topped $1.06 billion for the first time.

Tonnage increased 8.3% while gross revenues per hundredweight rose 2.3% for Con-way’s less-than-truckload (LTL) operation. Margins would have been down 0.9% if fuel surcharges were excluded. The carrier’s operating ratio was 90.5 for the quarter vs. 89.8 in first-quarter 2005.

Con-way announced a 5.5% rate increase that took effect in April.

Among national LTL carriers, YRC Worldwide reported increased volumes but weaker pricing. YRC operate Yellow Transportation, Roadway Express, and regional carriers New Penn and USF.

YRC reported total corporate revenues of $1.67 billion in the first quarter. Net corporate operating income was $87 million for the period.

Among its transportation operations, Yellow Transportation posted an operating income of $46.2 million on $791.2 million in revenues. Revenues were 70 7.7% and operating income rose 71.7%.

YRC’s Roadway Express unit reported operating revenues of $766.8 million, up 6.9% from the prior year period, and operating income of $36.5 million, up 143%.

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