Press Releases

Con-way Inc. Revises Earnings Guidance for Third-Quarter 2006

SAN MATEO, CA - Sep. 18, 2006 - Con-way Inc. (NYSE:CNW) today announced that third-quarter earnings from continuing operations are expected to be between $1.10 and $1.15 per diluted share. 

The company had previously provided earnings guidance for the 2006 third quarter of between $1.21 and $1.29 per diluted share from continuing operations.

The revised earnings guidance reflects:

• Business volumes below expectations at Con-way Freight, the company’s less-than-truckload operating unit. Third quarter tonnage levels at Con-way Freight are expected to show a mid-single digit decline compared to the 2005 third quarter, which posted a record tonnage gain.
• Changes to the recognition of earnings for Vector SCM, the logistics joint venture with General Motors Corp. Con-way is removing Vector’s expected profit contribution of five cents per diluted share from its 2006 third quarter guidance. Following the terms of the Vector agreements, under which GM exercised its call right, the companies are establishing valuations for Vector.  Profits accumulated by Vector from the exercise date through completion of the sale will be addressed as part of the final valuation determination and resolved at closing. Con-way will continue to be reimbursed by GM for Vector’s operating costs and transition services through closure of the transaction, which is expected by the end of the year.
• A gain from the sale of Con-way Expedite. Third quarter earnings from continuing operations will include results of Con-way Expedite and a gain of seven cents per diluted share from the sale of the unit, which was completed during the quarter.

Commenting on the revised guidance, Con-way President and CEO Douglas W. Stotlar said, “We knew our focus on yield in the first half of the year would, by design, restrain our growth to some degree in later quarters,” he noted.  “What we didn’t fully anticipate was a concurrent slowing of economic activity across our customer base. That exacerbated the situation and put further constraints on LTL volumes in a quarter that already faces an especially difficult comparison to the record-breaking third quarter we had in 2005.”

Third quarter guidance for Menlo Worldwide, which also faces tough comparisons against a strong 2005 third quarter, remains unchanged.

“We’ve adapted to shifting markets in the past, and we’ll continue to do so,” Stotlar noted. “Our strength as a franchise and our value proposition has never been better. We have an excellent balance sheet and cash generation capabilities, our current cash reserves give us strategic flexibility, and we have well-run, profitable operations with capacity to grow.”

“Most importantly, we have a motivated team of people, supported by proven processes and a strong infrastructure to continue delivering exceptional service to our customers and value to shareholders,” he concluded.

THIRD QUARTER EARNINGS RELEASE AND CONFERENCE CALL
Con-way Inc. plans to announce its third-quarter financial results on October 17 after the close of the market.  A conference call to discuss the results will be held the following day, October 18, 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, at the investor relations page. Related financial and operating statistics to be discussed on the conference call are 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 5987919. The replay will also be available at the same web-casting site providing access to the live call.

Con-way Inc. (NYSE:CNW) is a $ 4.2 billion freight transportation and logistics company with businesses in less-than-truckload and full truckload services, truckload brokerage, logistics, warehousing, supply chain management and trailer manufacturing. The company and its subsidiaries operate across North America and in 20 countries. Further information about Con-way Inc. and additional press releases are available via the Internet at www.con-way.com.

FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute “forward-looking statements” and are subject to a number of risks and uncertainties and should not be relied upon as predictions of future events. All statements other than statements of historical fact are forward-looking statements, including any projections and objectives of management for future operations, any statements concerning proposed new products or services, any statements regarding Con-way’s estimated future contributions to pension plans, any statements as to the adequacy of reserves, any statements regarding the outcome of any claims that may be brought against Con-way, any statements regarding future economic conditions or performance, any statements of estimates or belief and any statements or assumptions underlying the foregoing. Specific factors that could cause actual results and other matters to differ materially from those discussed in such forward-looking statements include: changes in general business and economic conditions, the creditworthiness of Con-way’s customers and their ability to pay for services rendered, increasing competition and pricing pressure, changes in fuel prices or fuel surcharges, the effects of the cessation of the air carrier operations of Emery Worldwide Airlines, the possibility that Con-way may, from time to time, be required to record impairment charges for long-lived assets, the possibility of defaults under Con-way’s $400 million credit agreement and other debt instruments (including defaults resulting from unusual charges), and the possibility that Con-way may be required to repay certain indebtedness in the event that the ratings assigned to its long-term senior debt by credit rating agencies are reduced, labor matters, enforcement of and changes in governmental regulations, environmental and tax matters, matters relating to the 1996 spin-off of Consolidated Freightways Corporation (CFC), including the possibility that CFC’s multi-employer pension plans may assert claims against Con-way, matters relating to the sale of Menlo Worldwide Forwarding, Inc., including Con-way’s obligation to indemnify the buyer for certain losses in connection with the sale, and matters relating to Con-way’s defined benefit pension plans. The factors included herein and in Item 7 of Con-way’s 2005 Annual Report on Form 10-K as well as other filings with the Securities and Exchange Commission could cause actual results and other matters to differ materially from those in such forward-looking statements. As a result, no assurance can be given as to future financial condition, cash flows, or results of operations.

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