Exhibit 99
NEWS RELEASE
Contacts:
Investor: Patrick Fossenier 1+ 650-378-5353
News Media: Gary Frantz 1+ 650-378-5335
Con-way Freight Launches Major Network Improvement Initiative
Re-engineered Service Center Network Will Deliver Improved Service
Performance and Reduce Costs
ANN ARBOR, Mich. - Nov. 3, 2008 - Con-way Freight announced today a major re-
engineering of its operating network that will help reduce service
exceptions, improve on-time delivery and bring faster transit times to
thousands of communities, while deploying a lower-cost, more efficient
service center network better aligned to customer needs and business volumes.
Con-way Freight is the less-than-truckload (LTL) carrier and largest
subsidiary of Con-way Inc. (NYSE: CNW)
"In study after study, customers have told us the service attributes most
important to their business are exception-free delivery, reliable on-time
service and fast transit times," said John G. Labrie, president of Con-way
Freight. "The prime objective of this effort was to create improvement
opportunities in all three service performance factors, and to identify areas
where we could reduce costs and gain efficiencies through better process
design and asset deployment."
Under the re-engineering effort, which utilized multidisciplinary teams,
advanced simulation modeling technologies and evaluated many operational
areas of the company, Con-way Freight is reducing its nationwide service
center network by 40 locations. The freight from closing locations will be
redistributed and balanced among more than 100 nearby service centers, with
the company continuing to provide service to all markets. Consolidating
volumes more strategically among fewer locations increases network density
and enables improvements in both service performance and operational
efficiency.
Changes are also being made to the nightly inter-city line-haul operation,
where new load planning, routing and scheduling programs will enable the
company to eliminate more than 124,000 miles per day from the system and
increase the amount of freight that is direct-loaded from origin to
destination. Reducing miles and eliminating re-handling through increased
direct-loading are key factors in safety, on-time performance, faster transit
times and exception-free delivery.
When the network changes are complete and fully operational in early
December, Con-way Freight will operate 303 "brick and mortar" service centers
in the United States and Canada, supported by 70 Freight Assembly Centers
(FACs), or strategic re-ship points. In Con-way Freight's day-definite
service model, FACs operate at night and use the same physical facility as
daytime pick-up and delivery operations.
Labrie emphasized that unlike restructuring efforts at other companies, Con-
way Freight is actually improving service while not exiting any markets.
"Every customer and every community that receives direct service today from
Con-way Freight will continue to receive direct service when our network
change is complete," he noted. "We are simply balancing business volumes
across a more strategic network footprint. It makes better use of available
capacity and improves service with more efficient operations."
The re-engineering plan, expected to reduce the company's cost base by $30
million to $40 million annually, calls for a number of generally smaller
locations to be consolidated into larger nearby facilities. As a result, more
than 75 percent of affected employees at closing locations will have the
opportunity to follow work to a new operating location. Affected employees
will also have the opportunity to consider a transfer to any other Con-way
Freight location where a position is available. If an employee moves to a
facility that is more than 50 miles from their current location, the company
will pay relocation expenses.
Severance packages and career counseling assistance will be provided to those
employees who are unable to remain with the company as a result of changes at
their decisional business unit. Depending on the choices employees make, the
company expects a net workforce reduction nationwide of about one percent.
In some communities, the effect of the operations change will also create new
employment opportunities in addition to local workforce growth from
transfers.
"These types of changes are never easy, but they are necessary for us to
advance our mission to provide the best LTL service in the market," Labrie
said. "This is the right decision at the right time for Con-way Freight. It
is one that ultimately will help ensure that we continue to provide stable
careers for our employees, enhance shareholder value and improve industry-
leading service for our customers as one of the most reliable, financially
secure and efficient LTL carriers in the business."
About Con-way Freight
Con-way Freight is the industry's leading less-than-truckload (LTL) freight
transportation company, providing guaranteed, day-definite regional and
transcontinental service through a single, unified network of more than 300
service centers in the United States, Canada, Mexico and Puerto Rico. Based
in Ann Arbor, Mich., Con-way Freight offers LTL freight delivery across North
America, as well as delivery in the United States for international less-
than-container (LCL) ocean shipments from Asia through its OceanGuaranteedSM
service. Con-way Freight is a certified FAST highway carrier and is ISO 9001-
and 14001-, C-TPAT/PIP, ACE- and CSA-certified.
Con-way Freight is a subsidiary of Con-way Inc. (NYSE: CNW), a $4.7 billion
freight transportation and logistics services company. For more information,
visit www.con-way.com/freight.
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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, any statements regarding the acquisition of
Transportation Resources, Inc. and its subsidiaries, including Contract
Freighters, Inc. (collectively, "CFI"), and related financing, 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 and the effect of
ongoing litigation alleging that Con-way engaged in price fixing of fuel
surcharges in violation of Federal antitrust laws, 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 acquisition of CFI and related
financing (including integration risks and risks that acquisition synergies
are not realized), the possibility of defaults under Con-way's $400 million
credit agreement and other debt instruments (including without limitation
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 or
legislation which potentially could result in an adverse impact on the
company; environmental and tax matters, matters relating to the 1996 spin-off
of Consolidated Freightways Corporation ("CFC"), including, but not limited
to, the arbitration demand and federal lawsuit Con-way has filed against one
of CFC's multi-employer pension funds seeking a finding that Con-way is not
liable for any of CFC's unpaid withdrawal liabilities, the $662 million claim
asserted by that fund against Con-way and the possibility that other CFC
multi-employer pension funds may assert claims against Con-way in the future,
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 2007 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.