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XPO | YRC, Con-Way May Say Profit Fell as Shipments Dropped

Not trying to start an argument but I do not see how you can say that it was better than expected, unless you are just taking what the company is saying on thier call.

They had a 32 cent loss net of gains from asset sales and benefits (one-time items) and Wall Street expected them to lose 8 cents. That's worse than expected. They also refused to give an earnings forecast for the next quarter, which is unusual for them.

I could be wrong. The stock market decides if it was good or bad, but my money is on bad. Just my 2 cents.
 
The stock market is bad, and we are all riding it out...they beat the revised earnings for the quarter by .13, and admitted it was a bit unexpected...read the analysts report, don't listen to me...Go to Rueters...And yeah, they refused to give an earnings forecast for the next quarter, EVERYBODY REFUSED...you have an economy on the brink of depression, what kind of speculation would YOU like for them to throw out there..?? They, like everyone, said the economy is entirely too volitaile to speculate...can't say I blame them there..Wall St loves it when they have a hard number to run with, makes their job easy...
 
Slow down BB. I was not attacking the company. I was just saying that they missed expectations whereas you had indicated that they exceeded them. I know the environment is tough for carriers right now. The stock market is the ultimate judge of whether the report was good or bad anyway, not you or me. As of right now, the stock is down 15% so I would still say they missed. I did go to Rueters and here is the quote from the article:

"YRC Worldwide said after the bell Thursday its third-quarter earnings fell 10 percent on sluggish demand and weak pricing. But excluding some sizable one-time items, the company said it would have posted a loss of 32 cents per share, compared with analysts' consensus estimate of a loss of 8 cents per share."

Sounds similar to my original post. Again, no reason to get emotional here. The numbers are what they are.
 
I apologize, I was not getting emotional, just stating facts...What you quoted there was the YRC figures...remember, just about 3 weeks ago, CNW revised their projected 3rd quarter earnings downward from their original projection, yet did not spiral to the revised level, which was somewhat surprising to all..so I guess the best way to put it is we didn't land as hard as originally thought...still down, just didn't crash..a small silver lining...
 
accept my apology as well because only now am I realizing that you said you were on the call in the morning, which was obviously the Con-way call, not YRC.

I agree that CNW beat expectations pretty handily. Quite impressive actually. Any company growing tonnage in this environment is taking market share and that is a good thing.
 
Always a good thing, but given that latter August, all September and so far all October are showing continued tonnage declines, we need to strap it on and prepare for darker days...people are scared, not spending money, and we all know what that means for our business...All we can do is continue to perform for our customer base at their expectations and hang onto what we have...I know it's hard to dazzle when the lights get dim, but we have some pretty amazing people all over the country in blue, and I have seen them do amazing things, time and again, when the lights go down..our greatest challenge is still ahead of us..
 
Boxboss said:
Always a good thing, but given that latter August, all September and so far all October are showing continued tonnage declines, we need to strap it on and prepare for darker days...people are scared, not spending money, and we all know what that means for our business...All we can do is continue to perform for our customer base at their expectations and hang onto what we have...I know it's hard to dazzle when the lights get dim, but we have some pretty amazing people all over the country in blue, and I have seen them do amazing things, time and again, when the lights go down..our greatest challenge is still ahead of us..
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You sound like one of those Monday Morning DVD's...:1036316054:
 
The following was sent out company wide by Doug S. thought some might find it interesting:

In our regular quarterly conference calls for the investment community, we often share different metrics to illustrate performance and provide context around the results of our operating companies, and where the trend lines seem to be heading.

One of the metrics we examine is tonnage per day for Con-way Freight. It’s a good, real-time measure of economic activity and often can provide a window into future trends. In the third quarter, July started out strong, but then began to fall off as the month closed. As August ensued the decline in tonnage per day not only continued, but accelerated. Then we got into September, and we saw something that has never before happened in Con-way Freight’s 25-year history – September’s tonnage per day dropped below that of August.

That’s a highly unusual and disturbing trend. It’s all the more disconcerting given that it now appears the global economy clearly is getting weaker by the month, as October is indicating. For all of our operating companies, a weakening economy translates very quickly into decelerating demand for our services, as our customers produce and ship less, and consumers rein in their spending. It means even more intense pricing as competitors battle to keep market share. And it focuses even more pressure on costs, which, if left unchecked, threaten our margins and the profits which are the bedrock on which everything else is built.

The takeaway from our third quarter investor call was this: we are headed into some uncommonly challenging and difficult economic times. By most measures, the economy has slipped into a recession, or is on the verge of doing so. History tells us that over the last 10 recessions, the average duration was about 19 months. We are running headlong into unprecedented global economic conditions that will test us like never before.

What this means for our company is that we have to respond, and we have to do so now. We cannot continue to operate under the same assumptions as in the past. When business levels are flat or receding, hard choices have to be made. Every avenue must be explored to reduce costs, every opportunity taken to create new competitive advantage. Our customers expect this; they are going through the same business decisions, and are looking to their service providers to step up.

Over the next weeks and months, we will be implementing specific efforts to curtail costs. Yet even as we pursue these efforts, customers still expect one attribute from us that cannot change, and indeed, we must continually strive to improve: the day-in-and-day-out reliable service performance that keeps their goods moving quickly to market and their supply chains functioning as efficiently as possible. It’s never been more important for us to provide an outstanding customer experience across all of Con-way’s service offerings.

I’m confident we’ll weather these challenging times because of our people, our values and the commitment we bring to work every day to take care of our customers. The times ahead won’t be easy, and there will be tough choices, but we’ll come out of them a better company that is stronger for the experience.
 
bob45 said:
The following was sent out company wide by Doug S. thought some might find it interesting:

In our regular quarterly conference calls for the investment community, we often share different metrics to illustrate performance and provide context around the results of our operating companies, and where the trend lines seem to be heading.

One of the metrics we examine is tonnage per day for Con-way Freight. It’s a good, real-time measure of economic activity and often can provide a window into future trends. In the third quarter, July started out strong, but then began to fall off as the month closed. As August ensued the decline in tonnage per day not only continued, but accelerated. Then we got into September, and we saw something that has never before happened in Con-way Freight’s 25-year history – September’s tonnage per day dropped below that of August.

That’s a highly unusual and disturbing trend. It’s all the more disconcerting given that it now appears the global economy clearly is getting weaker by the month, as October is indicating. For all of our operating companies, a weakening economy translates very quickly into decelerating demand for our services, as our customers produce and ship less, and consumers rein in their spending. It means even more intense pricing as competitors battle to keep market share. And it focuses even more pressure on costs, which, if left unchecked, threaten our margins and the profits which are the bedrock on which everything else is built.

The takeaway from our third quarter investor call was this: we are headed into some uncommonly challenging and difficult economic times. By most measures, the economy has slipped into a recession, or is on the verge of doing so. History tells us that over the last 10 recessions, the average duration was about 19 months. We are running headlong into unprecedented global economic conditions that will test us like never before.

What this means for our company is that we have to respond, and we have to do so now. We cannot continue to operate under the same assumptions as in the past. When business levels are flat or receding, hard choices have to be made. Every avenue must be explored to reduce costs, every opportunity taken to create new competitive advantage. Our customers expect this; they are going through the same business decisions, and are looking to their service providers to step up.

Over the next weeks and months, we will be implementing specific efforts to curtail costs. Yet even as we pursue these efforts, customers still expect one attribute from us that cannot change, and indeed, we must continually strive to improve: the day-in-and-day-out reliable service performance that keeps their goods moving quickly to market and their supply chains functioning as efficiently as possible. It’s never been more important for us to provide an outstanding customer experience across all of Con-way’s service offerings.

I’m confident we’ll weather these challenging times because of our people, our values and the commitment we bring to work every day to take care of our customers. The times ahead won’t be easy, and there will be tough choices, but we’ll come out of them a better company that is stronger for the experience.
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probably going to pay more for your insurance next year. That's the part about the tough choices that are going to make the company stronger.
 
Well, I sat in on a webinar today (the invite was nationwide) regarding the benefits, and we went over them backward and forward for 2009, and everything looks virtually unchanged, including your contributuion to the premiums...
Mr. Stotlar's statements may seem ominous, but they are indeed factual and forebearing. None of us here are stupid, we see what is going on around us, and it would be foolish to think that Con-way will get through the toughest economic times we have seen since the depression unscathed...We have to be cautious and prudent.
AND BEERFD---That came from the heart...remember, I worked other places before Con-way, and I used to watch people wilt under the first sign of gloom, but I am a field guy, and I watch the people of Con-way and how they react...when I said amazed, I meant amazed..They make a choice to be relentless, to attack..I am always impressed by them..
 
Not to be an antagonist,but why are some service centers still hiring? Tough decisions......I have'nt been around as long as some of you,but been here long enough to know what I see going on around me should be cause to take notice. Again I ask why would we be hiring when every other freight company is laying off or holding steady? I have never seen this and just curious why now when we have never done it the past?When we were covered up with freight we couldn't get them to hire any help and were just told that you will have to just tough it out or quit and now that we are coming to a screeching halt we suddenly decided to hire a bunch of guys.Makes me wonder what's next.The writing is on the wall and everyone needs to really get your house in order for the impending $#!* storm.I'll just leave it at that because I'm gonna get banned if I keep going.Sorry for the hijack.Could someone bring me a ladder so I can get off this soapbox?
 
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