EXHIBIT 99
CON-WAY INC.
NEWS RELEASE
Contacts:
Investor: Patrick Fossenier 1+650-378-5353
News Media: Gary Frantz 1+650-378-5335
CON-WAY INC. REPORTS FIRST-QUARTER RESULTS FOR 2010
SAN MATEO, Calif.-May 5, 2010-Con-way Inc. (NYSE:CNW) today reported a net
loss applicable to common shareholders for the first quarter of 2010 of $4.0
million (8 cents per share). The results compare to a first quarter 2009 net
loss to common shareholders of $154.0 million ($3.35 per share).
The first quarter 2010 net loss included a $2.3 million tax charge (5 cents
per share) related to recently-enacted health care legislation, and a $2.8
million pre-tax charge (4 cents per share) for the write-off of a customer-
relationship intangible asset related to the 2007 acquisition of Chic
Logistics. First quarter 2009 results included a goodwill-impairment charge
at Con-way Truckload of $134.8 million ($2.93 per share) and a $2.7 million
tax benefit (6 cents per share) from a now-expired fuel-related tax credit.
Revenue in the first quarter of 2010 was $1.16 billion, a 20.7 percent
increase from last year's first quarter. Operating income in the 2010 first
quarter was $14.4 million compared to an operating loss of $150.3 million in
the first quarter a year ago, primarily reflecting the prior-year goodwill-
impairment charge.
The 2010 first quarter tax provision was $1.1 million including the $2.3
million charge related to the health care reform legislation. The 2009 first
quarter had a tax benefit of $13.5 million, which included the effect of the
expired fuel-related tax credit, and no tax benefit from the non-deductible
goodwill-impairment charge.
Commenting on the quarter's results, Douglas W. Stotlar, Con-way's president
and CEO, noted that the freight and logistics markets improved each month in
the quarter as the economy continued its recovery. "Con-way Freight
experienced sequential tonnage gains month-to-month that were stronger than
historical seasonal data would indicate," Stotlar noted. "The LTL
supply/demand equation is undergoing a slow but steady shift, which should
lead to stronger pricing, but it will take some time for capacity to fully
rationalize, dampening our expectations for significant expansion of LTL
operating margins in the near term."
Menlo Worldwide Logistics continued to build on a strong 2009 with a record
profit in the 2010 first quarter. "Menlo is benefiting from strong current
project activity across its full portfolio of transportation and logistics
management services," Stotlar said. "With the combination of solid
contributions from maturing new accounts, a return to growth in transactional
volumes from existing customers and good cost controls, Menlo performed
well."
Con-way Truckload was successful at realizing efficiency and utilization
gains as it reduced empty miles and improved the operating productivity of
its fleet, which is somewhat smaller than this time last year. "Profits were
restrained primarily due to higher fuel prices and lower revenue per loaded
mile," Stotlar said. "With the recovering economy, demand is increasing in a
market with less capacity than a year ago. That's strengthening spot pricing,
although longer-term contract rate increases have been slower to gain
traction."
Operating results in the 2010 first quarter for Con-way's reporting segments
were as follows:
FREIGHT
For the 2010 first quarter, Con-way Freight, the company's less-than-
truckload operation, reported:
* Revenue of $725.0 million, a 26.3 percent increase over last year's
first-quarter revenue of $573.8 million.
* Operating loss of $3.2 million, compared to an operating loss of $23.4
million in the year-ago period. Results were adversely affected by
persistently weak LTL industry pricing, but benefited from employee-
related cost-saving initiatives implemented in April 2009.
* Tonnage per day increased 34.8 percent over the previous-year first
quarter.
* Yield declined 7.8 percent from the previous-year first quarter,
primarily reflecting continued pressure on pricing in the competitive
LTL market, and the effect of a 9.3 percent increase in weight per
shipment compared to the prior year. Excluding the fuel surcharge,
yield declined 11.2 percent.
* Operating ratio was 100.4 in the 2010 first quarter compared to 104.1 in
the previous-year period.
LOGISTICS
For the first quarter of 2010, Menlo Worldwide Logistics, the company's
global logistics and supply chain management operation, reported:
* Revenue of $355.2 million, up 12.2 percent from the prior-year first
quarter revenue of $316.5 million. Revenue growth was from both
transportation management and warehouse management services.
* Net revenue of $144.2 million, which increased 15.2 percent from $125.2
million in the same period of last year. The improvement reflects
contributions from warehouse management services as well as
transportation management revenue, which due primarily to higher
performance-based revenue, grew by a larger amount than purchased
transportation expense.
* Operating income of $12.9 million (including the $2.8 million expense
for the acquisition-related write-off), a record for quarterly profit
and a 158.5 percent increase from the $5.0 million earned in the first
quarter of 2009. The record operating income reflects the increase in
net revenue and improved operating margins on both warehouse and
transportation management services.
TRUCKLOAD
For the first quarter of 2010, Con-way Truckload, the company's full-
truckload transportation operation, reported:
* Revenue of $140.6 million, a 4.3 percent increase from the prior-year
first quarter revenue of $134.8 million. The increase primarily
reflects higher fuel-surcharge revenue, partially offset by the effects
of a smaller fleet and lower revenue per loaded mile.
* Operating income of $3.0 million, compared to a first quarter 2009
operating loss of $132.7 million, which included the goodwill-impairment
charge of $134.8 million. Excluding the charge, operating income
increased 39.3 percent from $2.1 million in last year's first quarter.
The current quarter benefited from improved asset utilization and lower
empty miles, but was negatively affected by lower revenue per loaded
mile and higher fuel costs.
* Operating ratio in the first quarter of 2010 was 97.5, compared to 98.3
in the first quarter of 2009. The ratios are exclusive of fuel
surcharges and the prior-year goodwill impairment charge.
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
operating income of $1.7 million in the 2010 first quarter compared to $0.8
million in the previous-year period.
INVESTOR CONFERENCE CALL
Con-way will host a conference call for the investment community tomorrow,
Thursday, May 6 beginning 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 64785288. An Internet replay of the presentation will also be available
at the Con-way website.
About Con-way -- Con-way Inc. (NYSE:CNW) is a $4.3 billion freight
transportation and logistics services company headquartered in San Mateo,
Calif. A diversified transportation company, Con-way delivers industry-
leading services through three primary operating companies: Con-way Freight,
Con-way Truckload and Menlo Worldwide Logistics. These operating units
provide high-performance, day-definite less-than-truckload and full truckload
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 us on the Web at
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 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, 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 2009 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.
Consolidated Statements of Operating Results
(Dollars in thousands except per share amounts)
Three Months Ended
March 31,
----------------------
2010 2009
-------- --------
REVENUE
Freight $ 725,003 573,815
Logistics [a] 355,183 316,477
Truckload 140,616 134,783
Other 11,839 5,989
Inter-segment Revenue
Eliminations (70,730) (68,132)
---------- ----------
$1,161,911 962,932
__________ __________
OPERATING INCOME (LOSS)
Freight $ (3,153) (23,387)
Logistics [b] 12,856 4,974
Truckload [c] 2,975 (132,678)
Other 1,722 779
--------- ---------
14,400 (150,312)
Other Expense, net 17,314 15,513
--------- --------
Loss before Income
Tax Provision (Benefit) (2,914) (165,825)
Income Tax Provision
[Benefit][d] 1,123 (13,476)
---------- --------
Net Loss (4,037) (152,349)
---------- ---------
Preferred Stock Dividends - 1,617
--------- ---------
NET LOSS APPLICABLE TO
COMMON SHAREHOLDERS $ (4,037) (153,966)
__________ _________
Weighted-Average Common Shares Outstanding
Basic 49,335,702 45,962,858
Diluted 49,335,702 45,962,858
Loss Per Common Share
Basic
Net Loss Applicable to
Common Shareholders $(0.08) $(3.35)
--------- --------
Diluted
Net Loss Applicable to
Common Shareholders $(0.08) $(3.35)
--------- --------
****************************************************
[a] Logistics' net revenue
Revenue $ 355,183 316,477
Purchased transportation
expense (210,934) (191,244)
---------- ---------
Net revenue $ 144,249 125,233
__________ _________
[b] The first quarter of 2010 includes a $2.8 million charge ($0.04 per share)
for the write-off of a customer-relationship intangible asset.
[c] The first quarter of 2009 includes a $134.8 million ($2.93 per share)
goodwill impairment charge.
[d] The first quarter of 2010 includes a $2.3 million tax charge ($0.05 per
share) related to recently enacted health care legislation. The first
quarter of 2009 includes a $2.7 million tax benefit ($0.06 per share)
from a now-expired fuel-related tax credit.
***************************************
Con-way Inc.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
March 31, 2010 March 31, 2009
ASSETS
Current assets $ 1,202,723 $ 1,076,894
Property, plant
and equipment, net 1,347,418 1,375,273
Other assets 438,971 444,050
------------- ----------------
Total Assets $ 2,989,112 $ 2,896,217
_____________ ________________
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilitie $ 878,130 $ 791,484
Long-term debt
and capital leases 758,588 760,789
Other long-term
liabilities and
deferred credits 659,602 657,215
Shareholders'
equity 692,792 686,729
------------- ----------------
Total Liabilities and
Shareholders' Equity $ 2,989,112 $ 2,896,217
_____________ ________________