Con-way has announced its financial results for the fourth quarter and full year 2014. It reported fourth quarter revenue of $1.44bn, up 6.1% compared to Q4 of 2013. Operating income in the fourth quarter was $41.3m, a 23.8% increase year-on-year. Accordingly Con-way’s Q4 margin stood at 2.87%.
For the full-year 2014, Con-way reported revenue of $5.81bn, a 6.1% increase from 2013. The company also reported operating income of $268.5m, an increase of 28.5% year-on-year. Accordingly Con-way’s 2014 margin stood at 4.62%.
The Q4 revenue result was driven by 5.9% growth from higher yields at Con-way Freight and 9.2% growth at Con-way Logistics which was attributed to the growth in transportation-management services, and to a lesser extent, increased warehouse-management services. This growth was offset slightly by the Truckload segment, the revenue of which declined by 2.3% compared to 2013’s fourth-quarter result. The decline in Truckload revenue reflected the effect of lower total loaded miles due to fewer seated tractors and lower fuel surcharge revenue, partially offset by higher revenue per mile.
Operating income growth was primarily attributable to a 55.1% increase Con-way Freight following increased pricing and ongoing revenue management initiatives. This was further supported by strong operating income growth in the logistics segment resulting from better warehouse management and higher yields at Con-way Truckload.
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