DOW JONES NEWSWIRES Con-Way Inc.'s (CNW) third-quarter profit declined 67% as the company posted lower revenue at the less-than-truckload and global logistics segments. Shares were down 3.4% to $31.50 in after-hours trading as results missed analysts' expectations. At the close, the stock was up 23% in 2009. "Overall, the business environment continues to present formidable challenges, characterized by weak demand, excess capacity and pricing pressure," said President and Chief Executive Douglas W. Stotlar. "We expect these conditions to persist in the near term, diminishing the prospects for earnings growth." Truckers have reported steep declines in volume amid the broad economic slump, a situation that isn't seen easing until 2010 at the earliest. Last month, Con-Way launched a regional truckload service, which will provide short-haul truckload shipments of less than 600 miles. The company said the segment tends to stay healthy even in challenging economic environments. By 2011, Con-Way plans to have 1,000 trucks providing regional service. Con-Way posted earnings of $13.5 million, or 27 cents a share, down from $40.5 million, or 81 cents a share, a year earlier. Excluding a change in accounting estimates related to revenue adjustments and tax items, earnings were 39 cents. Revenue fell 17% to $1.13 billion. Analysts surveyed by Thomson Reuters expected earnings of 52 cents on revenue of $1.14 billion. Con-Way's less-than-truckload unit, which carries goods for multiple customers on the same vehicle and its largest business division, reported revenue fell 14% although tonnage per day grew 5.1%. Revenue slid 18% at the company's global logistics and supply chain management operations. Last month, Sterne Agee said Con-Way is likely to perform well regardless of the economy's performance, because stagnation would make it hard for struggling YRC Worldwide Inc. (YRCW) to survive. -By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
