Con-way (no relation to Twit-ty) provides trucking and logistics services. Con-way Freight, the company's less-than-truckload (LTL) unit, provides regional, inter-regional, and transcontinental service throughout North America. (LTL carriers consolidate loads from multiple shippers into a single truckload.) Con-way Freight operates a fleet of about 9,200 tractors and some 26,400 trailers. Con-way offers full truckload transportation services through its Con-way Truckload subsidiary, which maintains a fleet of about 2,700 tractors and more than 8,000 trailers. Con-way's Menlo Worldwide Logistics unit provides contract logistics, freight brokerage, warehousing, and supply chain management services.
Year-over-year 2011 revenue rose about 7% thanks mainly to higher fuel surcharges and increased carrier-management services.
By segment, freight, accounting for 59% of revenue, increased more than 5% behind a 10% increase in yield, which itself was supported by more fuel-surcharge revenue. With an average weight per shipment of more than 1,300 pounds, this segment stays competitive by focusing on such factors as freight rates, service, reliability, and transit times. This segment is challenged with balancing a high fixed-cost structure with shifts in volume. Of the segment's some 290 freight centers, about half are leased. Freight's busiest season is September to November.
Revenue for the logistics segment, primarily comprising Menlo Worldwide Logistics and representing 29% of revenue, went up more than 7%, supported by more demand for carrier-management and warehouse-management services. This segment divides its expertise into groups that focus on the specific needs of automotive, high-tech, government, and consumer products customers. It also provides services through a single-client approach and offers scalable services for multiple customers. Logistics operates more than 75 warehouses (about 55 of them leased) in North America and more than 60 (about 50 of which are leased) in the rest of the world. Countries where Menlo provides service include Belgium, China, Germany, and Mexico. Logistics' business activity remains stable throughout the year without fluctuations linked to seasons.
Truckload's revenue, comprising 12% of revenue, surged about 8% mainly because of a 47% rise in fuel-surcharges. Providing service over an average distance of 800 miles from origin to destination, truckload operates mainly through contracts with owner-operators of tractor-trailers. Included among the segment's services is "through-trailer" transport into and out of Mexico. Like the freight segment, truckload's high fixed-cost structure must be balanced with shifts in volume. The segment works out of five owned terminals. Truckload is busiest during September and October.
The "other" segment, which primarily comprises Road Systems, a trailer maker, decreased about 12%. The primary activity of this unit is to manufacture and refurbish trailers for Con-way's Freight and Truckload (TL) subsidiaries. Road Systems has manufacturing operations in Arkansas. – less