Con-way Inc.
Gary Frantz - frantz.gary@con-way.com
(650) 378-5335
Con-way Inc. Revises Annual Guidance for 2007
SAN MATEO, Calif. - June 28, 2007
Con-way Inc. (NYSE:CNW) today announced that earnings in 2007 from continuing operations are expected to be between $3.25 and $3.45 per diluted share. The revised guidance includes a charge to second quarter earnings of 10 cents per diluted share for costs related to an award from litigation of a vehicular casualty claim.
The company had previously provided earnings guidance for the full year of between $3.60 and $3.90 per diluted share.
Commenting on the revised guidance, Con-way President and CEO Douglas W. Stotlar said, “The less-than-truckload (LTL)freight market has become increasingly competitive, which has reduced yields at Con-way Freight as pricing pressure has intensified across the board. We are doing what is necessary to defend our core business and to protect our market share in what continues to be a soft freight environment.”
While Con-way Freight has been successful at showing tonnage growth year-over-year, a significant portion has come from large national accounts, whose average yield tends to be lower. The company has hired more than 1,000 drivers system-wide since the first of the year, incurring higher expenses for employee, orientation, training and development as well as higher overall payroll levels compared to year-end 2006.
“LTL volume growth for the current quarter is in line with our earlier guidance,” Stotlar said. “While we expect year-over-year tonnage growth for the second half of 2007, we have moderated our expectations to reflect market conditions.”
Con-way Freight continues to meet operational benchmarks with service levels and productivity measures both tracking well. “Despite difficult market and yield challenges, our people are doing a commendable job providing consistent, reliable performance, demonstrating the value of Con-way’s differentiated service to our customers,” Stotlar noted.
He added that the company’s Menlo Worldwide unit continued to perform well and was on track with full year 2007 guidance issued earlier this year.
SECOND QUARTER EARNINGS RELEASE AND CONFERENCE CALL
Con-way Inc. plans to announce its 2007 second-quarter financial results on Wednesday, July 18 after the close of the market. A conference call to discuss the results will be held the following day, Thursday, July 19, at 11:00 a.m. Eastern Daylight Time (8:00 a.m. Pacific.)
The call can be accessed by dialing (866) 264-3634 or (706) 643-3632 (for international callers) and is expected to last approximately one hour. Callers are requested to dial in at least five minutes before the start of the call. The call will also be available through a live internet web cast at www.con-way.com, in the Investor Relations section. Related financial and operating statistics to be discussed on the conference call will also available on the company’s web site at www.con-way.com in the Investor Relations section.
An audio replay will be available for two weeks following the call by dialing (800) 642-1687 or (706) 645-9291 (for international callers) and using access code 4371197. The replay will also be available at the same web-casting site providing access to the live call.
About Con-way
Con-way Inc. (NYSE:CNW) is a $4.2 billion freight transportation and logistics services company headquartered in San Mateo, Calif. Named FORTUNE magazine’s “Most Admired Company” in transportation and logistics for 2007, Con-way delivers industry-leading services through three primary operating companies: Con-way Freight, Con-way Truckload Services and Menlo Worldwide. These operating units provide high-performance, day-definite less-than-truckload and full truckload and intermodal freight transportation, as well as logistics, warehousing and supply chain management services, and trailer manufacturing. 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 us on the Web at…www.con-way.com.
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