UPDATE 2-Con-way cautious after earnings miss; shares fall - News

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UPDATE 2-Con-way cautious after earnings miss; shares fall

By: AFX | 03 Nov 2009 | 06:06 PM ET

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SEATTLE, Nov 3 (Reuters) - U.S. trucking and logistics company Con-way Inc said it expects "formidable" economic conditions to affect earnings growth in the near term, and its shares fell 2.2 percent in after-hours trading. The company's tepid outlook came as it also posted a lower- than-expected quarterly profit on Tuesday, hurt by weak demand and pricing pressure. The San Mateo, California-based company posted a net profit of $13.5 million, or 27 cents per share, compared with a net profit of $38.8 million, or 81 cents per share, a year earlier. Excluding certain items, its profit of 39 cents per share fell below analysts' average expectation for 52 cents per share, according to Thomson Reuters I/B/E/S. Total revenue fell to $1.13 billion from $1.37 billion a year ago. The effective tax rate of the quarter was 46.1 percent, compared with 36.5 percent a year ago, Con-way said. "Overall, the business environment continues to present formidable challenges, characterized by weak demand, excess capacity and pricing pressure," Con-Way Chief Executive Douglas Stotlar said in the statement. The company expects such conditions to persist in the near term, reducing its prospects for earnings growth, he said. Con-way's results came on the same day that billionaire investor Warren Buffett's Berkshire Hathaway Inc said it would pay $26 billion to buy out U.S.

railroad Burlington Northern Santa Fe Corp. Con-way shares, which closed at $32.62 on the New York Stock Exchange, were down to $31.89 after touching $31.51 earlier in after-hours trading. (Reporting by Aarthi Sivaraman; editing by Phil Berlowitz and Andre Grenon) Keywords: CONWAY/ (aarthi.sivaraman@thomsonreuters.com +1 646 303-6191; Reuters Messaging: aarthi.sivaraman.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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