Con-way 4Q forecast falls short of expectations

ANN ARBOR, Mich. (AP) -- Trucking company Con-way said Thursday that its business was hurt by a variety of problems in the fourth quarter, including higher costs, lower business volumes, and bad weather.

As a result, the company expects that its net income will be about the same as a year earlier, when it earned 21 cents per share. FactSet says analysts expected net income of 38 cents per share, on average.

Con-way said operating income for its freight division, the largest of its businesses, will be less than it expected. It said the freight business was hurt by higher-than-expected expenses for employee benefits and cargo claims. Those expenses were greatest in December, Con-way said. Bad weather also hurt its efficiency.

The company said its Menlo Worldwide Logistics business was hurt by lower volumes from two new warehousing accounts and a customer bankruptcy. Con-way said the business' profit will fall by about two-thirds compared to last year.

Operating income for Con-way's truckload business grew somewhat compared to a year ago.

Con-way Inc. shares fell 55 cents to $41.40 during regular trading and dropped another $1.70, or 4.1 percent, to $39.70 in after-hours trading.