Con-way has announced its financial results for the third quarter of 2014. It reported Q3 revenue of $1.5bn, an increase of 6.66% year-on-year. The company also recorded operating income of $91.4m, a 35.0% increase from the third quarter of 2013. Accordingly Con-way’s margin stood at 6.09%.
Revenue rose by 5.2% in the Freight division as a result of improved yield. At Menlo Logistics revenue rose by 16.7%, this was primarily attributable to growth in transportation-management services, and to a lesser extent, increased warehouse management revenues. The rise was partially offset by Con-way Truckload which fared less well, recording a 1.8% decline in revenue. This reflected the effect of lower total loaded miles partially offset by higher revenue per mile.
The increase in operating income was spread between the Freight and Truckload divisions. At the Freight division the 39.4% growth was attributable to increased pricing and an improved composition of freight in the network. Con-way Truckload’s operating income grew by 19.2% and was attributable to improved operating productivity per seated tractor and increased yield. This was partially offset by a 7% decline at Menlo Logistics. The division was adversely affected by increased variable compensation expense and lower margins from warehouse management services, partially offset by improved margins from transportation management services.
Douglas Stotlar, Con-way’s president and Chief Executive Officer said, “Our financial performance reflected the ongoing progress of our revenue management and network optimization initiatives as we continued to strategically adjust our business mix to improve yield and create operating leverage.”
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