Exhibit 99
Con-way
NEWS RELEASE
Contacts:
Investor: Patrick Fossenier 1+650-378-5353
News Media: Gary Frantz 1+650-378-5335
CON-WAY INC. REPORTS FIRST-QUARTER 2009 RESULTS
SAN MATEO, Calif.-April 23, 2009-Con-way Inc. (NYSE:CNW) today reported a net
loss to common shareholders for the first quarter of 2009 of $154.0 million
($3.35 per share), which included a goodwill impairment charge of $134.8
million ($2.93 per share). Excluding the impairment charge, and on a non-
GAAP basis, Con-way's first-quarter 2009 net loss to common shareholders was
$19.2 million (42 cents per share). The results compared to first-quarter
2008 net income to common shareholders of $22.5 million (47 cents per diluted
share).
The goodwill impairment charge was associated with Con-way Truckload,
formerly Contract Freighters Inc., which the company purchased in August
2007. The charge was non-cash in nature and does not impact the company's
revolving credit covenants.
Total Con-way revenue was $962.9 million, a decrease of 19.9 percent from
last year's revenue of $1.20 billion. The 2009 first quarter had an
operating loss of $150.3 million, which excluding the goodwill impairment
charge was an operating loss of $15.5 million. This compared to operating
income of $54.0 million earned in the first quarter a year ago.
First-quarter 2009 results were affected by the recessionary economy, which
drove the decline in revenue and resulted in an operating loss for the
quarter at Con-way Freight, the company's less-than truckload (LTL) carrier
and largest subsidiary.
"The freight markets continued to suffer from excess capacity and intense
price competition," commented Douglas W. Stotlar, Con-way's president and
CEO. "While Con-way Freight posted losses in January and February, it
returned to profitability in March, as we saw the benefit of some seasonal
upturn in business and modest market share gains."
Stotlar noted that that economy remains challenging. "There are some signs
that our freight volumes may be nearing a bottom. However, feedback from our
customers as well as trend data for industrial output and inventory levels
indicate that shipping volumes are likely to remain restrained, certainly for
the short term," he said.
In response to economic conditions, the company instituted proactive measures
to reduce costs and conserve cash, implemented workforce reductions and
network adjustments in the 2008 fourth quarter, and took additional measures
in March this year. The March actions, which included salary and wage
reductions, and suspension of certain 401(k) contributions, are effective
mostly in April and are expected to produce cost savings in 2009 of between
$100 million and $130 million.
"Until we see some balance restored between supply and demand in the freight
markets, and a more stable pricing environment, we must be cautious about our
outlook for 2009," Stotlar said. He added that Menlo Worldwide Logistics,
the company's supply chain management subsidiary, provided a bright spot as
tight cost controls and prudent business development strategies sustained
profitability and delivered solid growth in customer wins.
The effective tax benefit rate for the 2009 first quarter was 8.1 percent
compared to an effective tax provision rate of 39.4 percent in the same
period of 2008. There was no tax benefit from the goodwill impairment charge
in the 2009 first quarter.
FREIGHT
For the 2009 first quarter, Con-way Freight, the company's regional less-
than-truckload operations, reported:
* An operating loss of $23.4 million compared to operating income of $36.1
million in the year-ago period.
* Revenue of $559.7 million, down 24.7 percent from last year's first
quarter revenue of $743.3 million. The decrease was attributable to
recession-driven business declines and significantly lower fuel
surcharge revenue.
* Tonnage per day decreased 12.4 percent from the previous-year first
quarter.
* Yield (revenue-per-hundredweight) decreased 12.1 percent from the
previous-year first quarter. Excluding the fuel surcharge, yield was
down 4.3 percent, reflecting the influence of excess market capacity and
resulting pricing pressure.
* An operating ratio of 104.1 in the 2009 first quarter compared to 95.2
in first-quarter 2008, reflecting the earlier-mentioned tonnage declines
and pricing pressures.
LOGISTICS
For the first quarter of 2009, Menlo Worldwide Logistics, the company's
global logistics and supply chain management operations, reported:
* Operating income of $5.0 million, a 20.6 percent decrease from $6.3
million in the first quarter of 2008, related to increased margin
pressures somewhat offset by cost reduction actions.
* Revenue of $316.5 million, down 7.3 percent from the previous-year
first-quarter revenue of $341.5 million.
* Net revenue of $125.2 million, compared to $126.0 million in the
previous-year first quarter. New contract revenue offset declines due
to increasing margin pressures as market conditions continued to affect
pricing.
TRUCKLOAD
For the first quarter of 2009, Con-way Truckload, the company's full-
truckload transportation operations, reported:
* An operating loss of $132.7 million, including the impairment charge of
$134.8 million, which was triggered by a first quarter decline in
truckload market values due to current economic conditions. Excluding
the impairment charge, operating income was $2.1 million for the 2009
first quarter. This compared to operating income of $10.3 million in the
year-ago period. Operating income in the 2009 first quarter also
reflected increasing pricing pressure and significantly higher vehicular
casualty costs.
* Revenue of $86.0 million, down 25.8 percent compared to revenue of
$116.0 million in the 2008 first quarter, reflecting soft demand, market
overcapacity and lower fuel surcharge levels. Both figures are after the
elimination of inter-company revenue.
* Yield (Revenue-per-loaded mile) decreased 1.9 percent from the previous-
year first quarter, reflecting the competitive pricing environment and
decreased fuel surcharges.
* Operating ratio on total revenue (without the goodwill impairment
charge, before inter-company eliminations and exclusive of fuel
surcharges) of 98.3, compared to an operating ratio of 91.4 in the
previous-year first quarter.
CON-WAY OTHER
Con-way Other includes the company's Road Systems, Inc. trailer manufacturing
unit as well as other corporate activities. These activities produced income
of $779,000 during the 2009 first quarter compared to income of $1.4 million
in the year-ago period.
Con-way's effective tax rate, excluding the non-deductible impairment charge,
is expected to be 36.5 percent for the year.
INVESTOR CONFERENCE CALL
Con-way will host a conference call for the investment community tomorrow
morning, Friday, April 24 at 8:30 a.m. Eastern Daylight Time (5:30 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 webcast
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 91980239. An Internet replay of the presentation will also be available
at the Con-way site.
About Con-way Inc. -- Con-way Inc. (NYSE:CNW) is a $5 billion freight
transportation and logistics services company headquartered in San Mateo,
Calif. Con-way delivers industry-leading services through its primary
operating companies of Con-way Freight, Con-way Truckload and Menlo Worldwide
Logistics. These operating units provide high-performance, day-definite less-
than-truckload (LTL) and full truckload and multimodal freight
transportation, as well as logistics, warehousing and supply chain management
services, and trailer manufacturing. Con-way Inc. and its subsidiaries
operate from more than 500 locations across North America and in 20
countries. For more information about Con-way, visit 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 of earnings, revenues, weight, yield, volumes, income or other
financial or operating items, all statements of the plans, strategies,
expectations or objectives of Con-way's management for future operations or
other future items, 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 legal and other
claims and proceedings that may be brought against Con-way, any
statements regarding future economic conditions or performance, any
statements regarding strategic acquisitions, 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, increasing competition
and pricing pressure, the creditworthiness of Con-way's customers and their
ability to pay for services rendered, 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 goodwill, in
tangible assets and other long-lived assets, the possibility of defaults
under Con-way's $400 million credit agreement and other debt instruments
(including without limitation defaults resulting from unusual charges),
uncertainty in the credit markets, including the effect on Con-way's ability
to refinance indebtedness as and when it becomes due, 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"), and matters relating to Con-
way's defined benefit pension plans, including the effect on the plans of
changes in discount rates and in the value of plan assets. The factors
included herein and in Item 7 of Con-way's 2008 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.
Con-way Inc.
Statements of Operating Results
(Dollars in thousands except per share amounts)
Three Months Ended
March 31,
---------------------------
2009 2008
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REVENUES
Freight $ 559,733 $ 743,320
Logistics [a] 316,477 341,460
Truckload 86,042 115,969
Other 680 832
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$ 962,932 $ 1,201,581
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OPERATING INCOME (LOSS)
Freight $ (23,387) $ 36,077
Logistics 4,974 6,263
Truckload [b] (132,678) 10,276
Other 779 1,392
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(150,312) 54,008
Other Expense, net 15,513 14,209
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Income (Loss) before Income Tax
Provision (Benefit) (165,825) 39,799
Income Tax Provision (Benefit) (13,476) 15,687
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Net Income (Loss) (152,349) 24,112
Preferred Stock Dividends 1,617 1,656
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NET INCOME (LOSS) APPLICABLE TO
COMMON SHAREHOLDERS $ (153,966) $ 22,456
============= =============
Weighted-Average Common Shares Outstanding
Basic 45,962,858 45,230,686
Diluted 45,962,858 48,146,091
Earnings (Loss) Per Common Share
Basic
Net Income (Loss) Applicable to
Common Shareholders $ (3.35) $ 0.50
============= =============
Diluted
Net Income (Loss) Applicable to
Common Shareholders $ (3.35) $ 0.47
============= =============
[a] Logistics' net revenues
Revenues $ 316,477 $ 341,460
Purchased transportation
expense (191,244) (215,452)
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Net revenues $ 125,233 $ 126,008
[b] Includes a goodwill impairment charge of $134.8 million
($2.93 per share) in the first quarter of 2009.
Con-way Inc.
Condensed Balance Sheets
(Dollars in thousands)
March 31, December 31,
2009 2008
------------- -------------
ASSETS
Current assets $ 963,246 $ 951,082
Property, plant and equipment, net 1,445,074 1,471,956
Other assets 509,251 648,669
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Total Assets $ 2,917,571 $ 3,071,707
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 645,816 $ 658,077
Long-term debt and guarantees 924,750 926,224
Other long-term liabilities and
deferred credits 857,198 861,814
Shareholders' equity 489,807 625,592
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Total Liabilities and
Shareholders' Equity $ 2,917,571 $ 3,071,707
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