Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Con-Way Inc. (NYSE:CNW)

Q1 2012 Earnings Call

May 2, 2012 8:30 am ET

Executives

Patrick Fossenier – Vice President of Investor Relation

Douglas W. Stotlar – President & Chief Executive Officer

Stephen L. Bruffett – Executive Vice President & Chief Financial Officer

W. Gregory Lehmkuhl – President of Con-Way Freight

Robert L. Bianco, Jr., – President of Menlo Logistics

Herb Schmidt – President of Con-way Truckload

Saul Gonzalez – Chief Finacial Officer of Con-way Truckload

Analysts

Chris Ceraso – Credit Suisse

Scott Group – Wolfe Trahan

Ken Hoexter – Bank of America/Merrill Lynch

Ben Hartford – Baird & Co.

John Godyn – Morgan Stanley

Sterling Adlakha – SunTrust Robinson Humphrey, Inc.

Robert Salmon – Deutsche Bank AG

Jason Seidl – Dahlman Rose & Co.

Chris Wetherbee – Citi

David Ross – Stifel Nicolaus & Company

Tom Wadewitz – JP Morgan

Ryan Cieslak – KeyBanc Capital Markets

Jeff Kauffman – Sterne Agee

Thom Albrecht – BB&T

Operator

Good morning. My name is Brandy and I will be your conference operator today. At this time, I would like to welcome everyone to Con-Way Inc.’s First Quarter 2012 Earnings Review Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions)

Thank you. I would now like to turn the call over to Patrick Fossenier, Vice President of Investor Relation. Please go ahead.

Patrick Fossenier

Thank you, Brandy. Welcome to the Con-Way First Quarter 2012 conference call for shareholders and the investment community. In a minute, I’ll turn it over to Con-Way President and CEO, Doug Stotlar.

Before we get into the call, I would like to offer a few reminders. First, certain statements in this conference, including statements regarding anticipated results of operation and financial condition constitute forward-looking statement and are subject to a number of risks and uncertainties and should not necessarily be relied upon as predictions of future events. Actual results of operations and financial condition might differ materially from those projected in such forward-looking statements, and no assurance can be given as the future results of operations and financials condition. Additional information concerning factors that could cause actual results and other matters to differ materially from those in the forward-looking statements and the inherent limitations of such forward-looking statements is contained in our Forms 10-K and 10-Q and other filings with the SEC.

Second, today’s prepared remarks contain non-GAAP financial measures. Reconciliations of GAAP to non-GAAP financial measures are found within the financial tables of our earnings release, which is available on our website at con-way.com.

I’d also like to note that we have a lot of people on the call today, so we’d appreciate it if you’d limit yourself to a couple questions then return to the queue.

Now without further ado, I’m pleased to turn it over to Doug Stotlar.

Douglas W. Stotlar

Good morning. On the call today, I’m joined by members of our senior leadership team, including Con-Way’s CFO, Steve Bruffett; Con-Way Freight President, Greg Lehmkuhl; Menlo Logistics President, Bob Bianco; and from Con-Way Truckload President, Herb Schmidt and Chief Financial Officer, Saul Gonzalez. Steve will provide some commentary on our financial picture, and then in the Q&A portion of the call, Greg and Bob will review highlights at Freight and Menlo and Herb and Saul will comment on Truckloads results.

The first quarter reflected strong profits across to all of our business units. The consistent execution of our strategy is yielding the intended results. Our focus has been on the fundamentals improving safety performance, driving efficiency gains through wider adoption of lean practices, improving employee engagement, leveraging technology and increasing price. Our progress in these key areas has driven our margin expansion. These were the building blocks of a quarter’s results and will remain our strategic platform going forward.

Turning to our consolidated financial results for the first quarter of 2012, Con-way reported revenues of $1.37 billion, a 9.7% increase over last year’s first quarter revenues of $1.25 billion.

Our operating income was $55.7 million in the 2012 first quarter, a 51.8% improvement over the $36.7 million earned in the prior year period. Diluted earnings per share were $0.46 compared to $0.12 per share in the first quarter last year.

On a non-GAAP basis, earnings per diluted share in the 2012 first quarter were $0.45 compared to $0.24 in the prior year. The non-GAAP results exclude the effects of discrete tax adjustments.

Moving now to review of our business segments, I’ll start with Con-way Freight, our LTL Company and largest revenue segment. Con-way Freight posted first quarter operating income of $34.5 million, a 69.6% improvement over the $20.3 million earned in the same period a year-ago. Revenue was $831 million, an 8.2% increase over last year’s first quarter revenue of $767.7 million. Con-way Freight’s operating ratio this period was $95.8 million, improving from last year’s first quarter OR of $97.4 million.

Tonnage per day increased 1.5% over last year’s first quarter. Revenue per hundredweight or yield increased 6.1% in the quarter compared to the prior year. Excluding fuel surcharge, the increase in yield was 4.1% over last year’s first quarter. Con-way Freight made steady progress in its key focus areas during the quarter. Our journey to improve safety performance continues to produce encouraging results. This quarter accidents and injuries were down 20% and 35% respectively compared to the 2011 first quarter. We’re running a stable consistently performing network. We remain diligent in managing our cost and our lean continuous improvement practices or uncovering opportunities to increase the efficiencies on an ongoing basis.

Overall, the demand for LTL services remains steady throughout the quarter. As a result of this stable environment, we were successful in achieving mid-single digit price increases on contract renewals that came due during the quarter. The stable demand environment has continued through April, where we have seen daily tonnage record a modest uptick rising 2.1% year-over-year from last April and up 4% sequentially from March of this year. We remain confident in our strategy for Con-way Freight and in our ability to execute that strategy in ways that improve the customer experience increased efficiencies and further expand margins.

Now I’ll move to our Logistics segment. For the 2012 first quarter, Menlo Worldwide Logistics are global logistics and supply chain management company reported operating income of $12.3 million or 42.2% improvement over the $8.6 million earned in last year’s first quarter. Revenue for the quarter was $419.1 million, an increase of 13.3% over the prior year revenue of $370 million.

Net revenue or revenue less purchased transportation came ended a $155.7 million a 9.4% increase over the $142.3 million generated in the previous year period. It was the solid first quarter for Menlo. Stronger business levels in both warehousing and transportation management services contributed increased revenues as did the addition of new customers and growth at Con-Way multimodal Menlo’s freight brokerage operation.

On the operating income side, we benefited from prudent cost controls that held administrative expense flat year-over-year, also contributed to the favorable results we’re improving profits from international operations and higher margin contributions from warehousing, transportation management, and [to appropriate] business.

Menlo is executing well against its strategy. The company’s ability to create value through lean continuous improvement is recognized by customers at a core competitive advantage.

Now I’ll review results at our truckload segment. For the 2012 first quarter, Con-Way Truckload reported operating income of 10.6 million, a 48.9% improvement over the $7.1 million during last year. The revenue increased 8.3% to $157.3 million over last year’s fourth quarter revenue of 145.2 million. Revenue per loaded mile increased 3.3% from the previous year first quarter.

The operating ratio ex-fuel surcharge improved to 91.3 from 93.8 in the year ago first quarter. Loaded miles increased 1.8% compared to the previous year quarter while empty miles decreased to 9.3% from 9.6% last year. Overall, it was a good quarter for our Truckload Company focused on network balance and improving lane density is driving reductions in empty miles and increasing revenue per loaded mile.

Despite a tightening driver pool, Con-Way Truckload has been able to fill its driver needs through effective recruiting and retention programs. Our truckload company also has been successful securing rate increases as contracts have come through the normal bid cycle.

Stable demand in the truckload market coupled with an emphasis on premium service and network efficiency gives us confidence in our ability to further expand margins at Con-Way Truckload.

Now, I will turn it over to Steve Bruffett for some additional financial perspective.

Stephen L. Bruffett

Thank you, Doug, and good morning. Our cash flow from operations in the first quarter was 53 million as compared to 61 million in the first quarter of last year. For numerous moving parts, the year-over-year decline could be put in contest by two items, net income and cash taxes.

Net income provided additional 19 million in cash flow over the prior year due to stronger performance at each of our business units. On the other hand, cash taxes consumed 22 million more on a year-over-year basis. The 22 million is the net effect of an 18 million-tax refund in the first quarter 2011 and a payment of about 4 million in taxes during the first quarter of this year.

Net capital expenditures totaled 78 million in the first quarter as compared to 52 million in the first quarter of last year. Most of the increase was attributable to tractor purchases at Con-way Freight as Stotlar previously communicated plans lower freight due to respective targets. For the full year of 2012, we still expect net CapEx to be approximately 300 million. Financing activities were relatively unchanged from prior year at 8 million of cash outflow, which is mostly for common dividends and capital lease payments.

At March 31, our cash and marketable securities totaled 419 million, which compared to 451 million at year-end. The last cash flow topic I’ll cover is that of pension funding and we still expect to fund at least 51 million into defined benefit pension plans this year. This is the minimum required funding and any potential funding above that amount will be evaluated as we move through the year.

Moving to the consolidated income statement, there were no large items to call out from the first quarter. But to provide context, I would note that the favorable year-over-year variances we had Con-way Freight, in Con-way Truckload from weather and fuel or more than offset by the increase in healthcare cost. Our consolidated healthcare expenses were up nearly $9 million from the first quarter of last year. As these expenses were $43 million this year and $34 million in the first quarter of last year.

However, our healthcare expenses have settled into a more predictable seasonal pattern. So we consider this year’s results to-date to be more inline with our expectations.

Depreciation and amortization expense was $52 million in the first quarter of 2012, as compared to $50 million in the first quarter of last year. For the 2012 year, we still expect depreciation expense to be about $220 million.

Our effective tax rate was 38.1% in the first quarter and adjusted for small discrete items it was $38.6 million. Discrete tax items netted to only $212,000 net rounding ahead of $0.01 impact on the EPS. For the full year, we now expect our tax rate to be about 39% and it’s down slightly from our original guidance of 40%.

Our fully diluted share count for the first quarter was $56.3 million and we would guide you to use $56.4 million for the full year.

One final comment, as a remainder that we implemented merit increases for the majority of our employees at the beginning of April, and these increases represent about a $11 million per quarter as we move forward.

Speaking of moving forward, we’re focused on carrying the momentum of a well executed first quarter into the remainder of 2012, and we intend to do so through continuous improvement, margin expansion, and return on capital.

With that, I will turn it back over to Doug.

Douglas W. Stotlar

Thanks Steve. Before I open it up to questions, I would like to take a moment to talk about some planned management changes at our Truckload Company. 18 months ago, Herb Schmidt, President Con-way Truckload started to think about his plans for retirement and preparing Con-way Truckload for succession and leadership.

It has been a very thoughtful and deliberate process. One worker for the past year has been actively mentoring a successor and working with Truckload’s management team on a succession plan for what we all expect will be a seamless transition. Herb has now informed me that he believes the company is ready for the transition and he has provided us with notice of his intent to retire at the end of September.

At that time, succeeding Herb as Con-way Truckload’s President will be Saul Gonzalez who currently serves as Truckload’s Chief Operating Officer and is a 20-year veteran of the organization. Over the course of the past several months, Saul has served and assumed an increasingly larger role in the operational leadership of Con-way Truckload.

His understanding of the company’s culture coupled with his management and team building skills have been instrumental in Con-way Truckload’s success. He has established a level of trust and creditability with Truckload’s employees and customers that will serve him well. Herb believes as I do that Saul is ready to take the reigns of Con-way Truckload. On behalf of the Board and our executive team, I want to congratulate Saul and I welcome him to his first earnings call.

Herb is one of the industry’s most respected and accomplished executives. He has been a tremendous asset to the Con-way organization and a great friend to me. He will remain available in a consulting capacity to me, our board, and to Saul as need it through succession. Herb leaves Con-way Truckload in good hands. We are both confident that Saul and his team will carry on the great tradition of teamwork and home grown leaders of Con-way Truckload.

In closing, we are encouraged with our first quarter results that validate the consistent strategy we have been executing and the discipline and focus of our employees deliver everyday for our customers. We continue to build our foundation for improvement based on safety, efficiencies and margin expansion and to deliver value to our shareholders.

And with that operator, we’re ready to take some questions. We’re ready for questions, Brandy.

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from Chris Ceraso with Credit Suisse.

Douglas W. Stotlar

Hello, Chris.

Operator

Chris, your line is open.

Chris Ceraso – Credit Suisse

Thanks. Sorry. Can you hear me now?

Douglas W. Stotlar

Yes.

Chris Ceraso – Credit Suisse

Okay. So it seem that salaries and wages were better than expected. Was there anything on workmen’s comp or maybe something associated with the better performance in accidents and injuries in the quarter that drove that performance?

Douglas W. Stotlar

Steve.

Stephen L. Bruffett

Certainly salaries and wages, I’ll speak generally on behalf of Con-way Freight is, I assume that’s what your question was heard, but the certainly the salaries and wages performance, as a percent of revenue was very solid in the quarter. Benefit expenses themselves, because the healthcares in this line and the defying contribution or 401(k) expenses were up year-over-year as well. So the benefit component was up, but it was offset by the strong performance particularly in the variable portion of salaries, wages and benefit.

Chris Ceraso – Credit Suisse

Okay. Meaning, what – what were the variable pieces that were lower?

Stephen L. Bruffett

Wages in [CDR] that’s the biggest component within salaries, wages and benefit.

Douglas W. Stotlar

And that’s primarily reflected because of improved operating efficiencies.

Chris Ceraso – Credit Suisse

Okay. So (inaudible) efficiency.

Unidentified Company Representative

Correct.

Chris Ceraso – Credit Suisse

Okay. And then just the last question on revenue per 100 (inaudible) comparisons that a last refer teams as we go forward, what kind of full year increases do you think you can achieve in 2012?

Stephen L. Bruffett

So let me, Q1 if you normalize our yield improvement for weight per shipment and length of haul on a net fuel basis that number is 5.0 even. Looking at the balance of the year, the year-over-year comparisons do get toppers. So we’d expect that improvement decline somewhat. That said, the demand in pricing environment remained strong, our customers continue to see value in our superior service and we would expect to continue to get fair price increases as our contracts expire through the year.

Chris Ceraso – Credit Suisse

Okay. You said you were getting good increases on contract renewals. Was that in the 4% to 5% range?

Stephen L. Bruffett

Yeah. For the first quarter, the contract renegotiation were mid single digit increases.

Chris Ceraso – Credit Suisse

Okay. Thank you very much

Stephen L. Bruffett

Thanks, Chris.

Operator

Your next question comes from the line of Scott Group with Wolfe Trahan.

Scott Group – Wolfe Trahan

Hi, thanks. Good morning guys.

Douglas W. Stotlar

Good morning, Scott

Scott Group – Wolfe Trahan

So, Doug, why don’t you answer some directional – for some directional color on how are you thinking about the LTL margins for the second quarter. We typically see about 200 to 300 basis points of sequential improvement from first to second quarter, but I know that the wage increase starts April 1 and you had some fuel and weather in the first quarter. How are you thinking about just directionally the – how the margin should look relatively in second quarter from first quarter?

Douglas W. Stotlar

We agree with you. Directionally, we expect them to improve in Q2 while were not going to call it a target. We do expect to see improved margin expansion in the second quarter. The second quarter historically has been our strongest demand quarter. You’ve got three months of very good stable demand, and so that leads to a very good operating efficiencies and revenue growth.

Scott Group – Wolfe Trahan

Are there some other moving parts that we’re thinking about one relative to that 2 to 300 basis points of normal sequential improvement that suggest that is an attainable number?

Stephen L. Bruffett

Well, the only thing I would caution is that, historically in the past, when we did our annual waging (inaudible) it was usually a mid-year event, a mid-year and a third quarter event, and this year we’re doing those in the beginning of second quarter, so that might have somewhat of a dampening effect, but certainly not expense, so we don’t expect to overcome and still we have the ability to expand our margins.

Scott Group – Wolfe Trahan

Okay, that’s helpful. And then on the truckload side first congratulations Herb and Saul and I guess your retirement and promotion respectively. It seems like the best quarter we seen from truckload in a while and if you can just give some added color particularly on some of improvements in deadhead and overall a lot of improvement. Can you first maybe were there any large gains on settlement second quarter if you can talk about that. And then what you are seeing so far in second quarter just going to update on demand trend so far through April, and now that we’re through in the bulk of bid season kind of what your expectations are for truckload pricing this year?

Herb Schmidt

Okay. Well Scott, this is Herb. No basically it’s just, it’s a lot of little things, it’s continue to execute on the things that we’ve called out in the previous calls more line density continuing to raise rates, work on our 80 miles and we’ve been successful of doing so, it’s just basically been than execution and keeping our trucks sold and ABCs. I do see continued rates cracks, we’re up about 3.3% year-over-year and six of our ten largest customers were we’ve not fully implemented the rate increases this year. So we’re certainly going to see some additional fraction this year and I think it will be steady throughout the year for what I’m saying with respect to capacity side.

Scott Group – Wolfe Trahan

So do you think that 3.3% is a good run rate for the year or with more bids coming in, do you think we see some acceleration from 3.3% on the yield side?

Herb Schmidt

Well, I think we’ll see continued incremental rate increases throughout the year over quarter we had been year to-date. The 3.3% is first quarter last year over or in this year over first quarter last year and so, I think we will continue to improve on that throughout the year.

Scott Group – Wolfe Trahan

I apologize I’m just not following. So on a year-over-year basis do you think that we get better than 3%? I mean I’m just trying to get a sense of what you think for the kind of what are your thoughts on for the year for year-over-year pricing in truckload?

Herb Schmidt

I think there is a few sense left in the tank.

Scott Group – Wolfe Trahan

Gotcha. All right, thanks a lot for the time. I appreciate it.

Douglas W. Stotlar

Thanks Scott.

Operator

Your next question comes from the line of Ken Hoexter with Bank of America/Merrill Lynch.

Ken Hoexter – Bank of America/Merrill Lynch

Great, good morning. You mentioned that the 2.1% growth on the LTL freight side in April. Can you talk about, how the balance roll through the quarter you are facing easier comps that it looks like with a down 8% last year. How you expect that what kind of growth do you expect – I guess how do you balance your chasing freight volumes versus price in the market just given the pace of the market in what we’ve seen from other carriers who are alternating between chasing volumes and chasing price.

Douglas W. Stotlar

Well, I don’t say we’re not a market share stay right now. We are certainly not chasing volumes or price, but that said our service is better than it’s ever been in the history of the company and we’re seeing the strong demand from customers across the country. So it’s certainly not a key piece of our strategy to grow top-line this year, but were our demand is pretty good.

Ken Hoexter – Bank of America/Merrill Lynch

And again can you comment on the path of freight through the quarter and then what your comps are looking like going forward?

Stephen L. Bruffett

Yeah. I have that here. This is Steve, just sequentially through the quarter January average weight per day or tonnage per day was up 3.5% of January it was up 1.5%. In February, it was flat in March and then the 2.1% that we mentioned in April.

Ken Hoexter – Bank of America/Merrill Lynch

Any reason why the deceleration and then reacceleration, was there something going on in the programs were something in April?

Douglas W. Stotlar

Primarily the comps from last year and March is particularly strong last year. We were pleased with the seasonal uptick we saw in March this year, but month-over-month sequential basis, but year-over-year comp was gone up.

Ken Hoexter – Bank of America/Merrill Lynch

Wonderful. And then Steve, if my follow-up. Can we talk about cash, it looks like you felt a bit of a cash toward with $400 million, what are your targets, where you want to re-invest, you want to start expanding on the truckload side given the margins are improving, is there a certain point where you would expand, is there stock buyback. Can you talk about what you deem to do with the cash?

Stephen L. Bruffett

So far, we remain focused on the previously communicated objectives, which are fleet renewal and pension funding so that we can diminish the amount of risk associated with that item on our balance sheet. And that’s where our primary focus has been and we’ll remain any potential future uses of cash or all in the mix that none have been or particular path has been decided for.

Ken Hoexter – Bank of America/Merrill Lynch

Okay. So, does the fleet renewal and pension funding decrease that $400 million or do you sit with the $400 million through the year and your free cash flow fund those objectives?

Stephen L. Bruffett

Depending on how things go in the environment and so on and how bonus depreciation works out or it doesn’t work out. As we go forward that can move that the number around the fare amount. We anticipate being roughly cash flow neutral the modest cash flow users depends on a number of factors including the timing of and amount of CapEx and pension fund. It’s a little hard to give one answer to that question because there is still a lot of the game to be play in 2012.

Ken Hoexter – Bank of America/Merrill Lynch

Wonderful. Thank you.

Douglas W. Stotlar

Thanks Ken.

Operator

Your next question comes from the line of Ben Hartford with Baird.

Ben Hartford – Baird & Co.

Good morning guys. Great, can I get a little bit of perspective on the Freight side in terms of the initiatives that you have underway and I think the last update, as we understood you had 42 pilots underway at the terminals, out of the 290. Where do we sit today? Where do you expect that number to be by the end of the year? And can you talk about kind of where we stand on this initiative?

Douglas W. Stotlar

Yeah, on the lean side, we couldn’t be more excited about how our continuous improvement program is shaping up. By the end of the year, we should have about 80 sites up in running and that should touch and that should support almost 10,000 of our 21,000 employees. So it is accelerating. The field is really excited about and we’re seeing nice gains and improvements in customer performance, safety and efficiency at our (inaudible).

Ben Hartford – Baird & Co.

You had talked about the productivity being at an all time high. Can you talk a little bit about, just may be qualitatively in the first quarter the improvement on the freight margin. How much of it was getting a more stable book of business versus the underlying operational improvements that you’re making. Could you talk about kind of the order of magnitude in terms of the contributors to margin improvement this quarter?

Douglas W. Stotlar

Yeah, I think clearly year-over-year the largest contributors yield improvement, but cost and efficiency isn’t too far behind. I did report last quarter that were all time highs in efficiency of just on the safety. Doug mentioned our accidents are down 20% year-over-year in the first quarter. Our injuries are down 35% and that’s after the first quarter of last year having a year-over-year improvement of 20% and 40% respectively.

So year-over-year our safety program continues to yield results and ultimately that will flow through the bottom-line in vehicular expense and worker’s comp. Although both of those you have quite a long tail on it. On the more traditional efficiency metrics, our P&D performance is up 2.4% year-over-year, our dock performance is up 2.3% year-over-year and our load factors are up 0.3% year-over-year. But when you account if you look at the first quarter of last year, we had some mild benefit around how we accounted for the holiday. So, first quarter last year was the highest load factor of last year. And if you look sequentially quarter-over-quarter, our load factors up 2.1%.

So we continue to improve our understanding of costs in the line-haul network. We have a fig focused on continued load factor improvement this year. And in March, we have or, excuse me, in the first quarter our load factor was at an all time high. Our MT miles were the lowest point in our history at 6.5% and I just have to report five minutes before this call we saw another sequential 1% to 5% improvement in April. So I’d say, the lean initiatives are working and productivity continues to march on the total high levels.

Ben Hartford – Baird & Co.

Okay. I appreciate that.

Douglas W. Stotlar

Sure. Thanks Ben.

Operator

Your next question comes from the line of John Godyn with Morgan Stanley.

John Godyn – Morgan Stanley

Hey thanks for taking my question. First, I just wanted to clarify the answer to one of the earlier questions on OR between 1Q and 2Q. I think you said you expect additional margin expansion. I just wanted to make sure are you saying that sequentially margins are going to improve which is sort of consistent with seasonality or you saying that year-over-year in the 2Q, margins could actually improve more than in first quarter?

Unidentified Company Representative

Both.

John Godyn – Morgan Stanley

Okay, thanks. And next question, UPS, on their conference call, just offered some comments about being aggressive price competition in the market. It seems like the price numbers you’ve been talking about and the rate renewals are quite good. Are you seeing any signs there in the marketplace?

Unidentified Company Representative

I would just say that the – it’s only the competitive environment, but the demand and pricing environment remains strong. We see pockets of competition at times in the month in certain regions, but overall we will continue to be positive and optimistic of the environment.

John Godyn – Morgan Stanley

Okay, thanks. And then last question, Doug, and I will leave this open-ended but of course, there has been some chatter in the marketplace lately on sort of how much value is created by having TL, LTL and logistics sort of under one roof? Can you just talk about how integrated the businesses are and how much of a competitive advantage it is to have them all under one roof?

Douglas W. Stotlar

An awful lot of the backroom functions are (inaudible) three business units. When we look at IT, we have the benefits and we look at all the systems that support the underlying companies. That’s all integrated as part of one operating platform.

When we look at the synergies between the companies, Menlo really is a platform that does business with all of our business units. They manage transportation for freight. They manage a lot of the ad hoc substitute service business for freight with both of their transportation management as well as their multimodal unit. They do business with truckload on both and multimodal is [fees], it gets opportunities from the truckload unit where we turndown loads every day and give those opportunities to multimodal. They also help truckload with capacity from time-to-time, when we need to serve a customer. And then truckload benefits from using the Menlo purchase transportation needs for their customers and their transportation management opportunity by having visibility to what their truckload spend is as well as doing business with freight to help augment their network. So we continue to find opportunities across the platform.

Although with that said, we continue to get more sophisticated about how we’re able to mind this information and we’re looking at some systems right now that will give us much better visibility when we look at these networks as one network and very complex network as that and look at opportunities to layer that against our existing customer base and find opportunities to provide real value for our external customers as well as our internal customers.

So we continue to be focused on long-term opportunities to provide sustainable value for our shareholders, certainly some of the parts analysis is new concept to us and we compare it with other strategic alternatives we have for our platform. But at this time, we really believe the greatest value for shareholders is unlocking the real core value of the asset based companies of both truckload and freight and continuing to grow our non-asset based business. So that’s where our focus is going to remain.

John Godyn – Morgan Stanley

That’s great. Thanks for the time guys.

Operator

Your next question comes from the line of Sterling Adlakha with SunTrust.

Sterling Adlakha – SunTrust Robinson Humphrey, Inc.

Hey, good morning, gentlemen. Congratulations all and also to you, Herb. I’m not sure I completely understood the comments comparing healthcare cost to the weather benefit. Are you saying there were one time healthcare cost in the quarter of 9 million and that cost against one time weather benefits of 9 million?

Stephen L. Bruffett

Well, this is Steve. Let me just try to clarify it. That comparison was to provide some context for consolidated results in the first quarter of 2012 compared to the first quarter of 2011. And that was its primary intense there were moving parts. Yes, there were favorable year-over-year variances for weather and higher fuel surcharges. We add those together they don’t amount to the year-over-year increase we had in healthcare.

Sterling Adlakha – SunTrust Robinson Humphrey, Inc.

Can you just – why don’t you just quantify it for us, then pretty say in healthcare with one-time first of all the $9 million year-over-year it was that one-time, because I thought you expecting something like 5% medical inflation for the year anyway and was weather benefits and you’re saying was a little bit less than $9 million on a year-over-year basis?

Stephen L. Bruffett

You know weather was definitely less than $9 million. Like I said weather plus fuel was less than $9 million. And then the healthcare trying to put it in context in my prepared comments, we would consider our results this year normal or seasonally normal of what we would expect, whereas the first quarter of last year was below that level.

Sterling Adlakha – SunTrust Robinson Humphrey, Inc.

Okay. That’s all. Thanks Steve. And I wanted to follow-up my second question on Scott’s question on the truckload a bit. I mean gets the answer where there gains on sale on the quarter and can you quantify on how much?

Stephen L. Bruffett

Where the gains on sales in terms of rate per loaded mile.

Douglas W. Stotlar

No.

Sterling Adlakha – SunTrust Robinson Humphrey, Inc.

Yes, I mean we renegotiated some contracts with respect to our used equipment and we’re working on well, but in terms of action gains versus book value in that?

Stephen L. Bruffett

Actually, there were gains of about 1 million bucks during the quarter on the sale of the instructors.

Sterling Adlakha – SunTrust Robinson Humphrey, Inc.

Okay, great. Thanks for the time gentlemen.

Stephen L. Bruffett

Thanks.

Operator

Your next question comes from the line of Justin Yagerman with Deutsche Bank.

Robert Salmon – Deutsche Bank AG

Hey, good morning guys. It’s Rob Salmon for Justin. If we talk a little bit further into the Con-Way Freight to our expectations, you guys have put out a longer term goal of hitting a 95% OR and if I look at the 95.8% that you guys generated in Q1, it feels like you are well beyond the track of achieving that about potentially this year. Could you I guess update us on the OR expectations longer-term given the seasonal strength we saw in Q1.

Stephen L. Bruffett

Rob, we did put that 95% out here back a little over a year ago just to give everyone a direction to where we thought we are going. We are not going to continue to update a lot of goal going forward. But as I mentioned earlier, we are certainly confident in our ability to continue to expand margins and we expect Q2 margins to be better than they were in prior year and certainly sequentially better than they were from Q1. But again, the strategy is very consistent around, so we are going to continue to focus on safety, we are going to continue to focus on efficiencies and we believe the environment is conducive for us to continue to able to improve yield and those factors will continue to allow us the opportunity to expand our margins.

Robert Salmon – Deutsche Bank AG

That’s helpful. I guess if I’m thinking about the OR and just the overall performance, clearly you guys leverage quite a bit of productivity improvements in the first quarter. Could you talk about what’s going differently at Con-Way Freight now and give us a better sense of kind of how we are moving in the month of March and kind of momentum that may be carrying through in April given the sequential uptick in tonnage that we’ve seen?

W. Gregory Lehmkuhl

I think what’s different is we are changing our culture to one of lean continuous improvement that we’re engaging our employees probably better than we ever have in the efforts to improve process that ultimately improve customer performance, safety and efficiency. And so if you look at our results in the last few quarters, productivity continues to take off. We have literally three years of solid plans around each core cost element in the business in P&D dock and the line-haul network to continue to improve. And we would expect those numbers to continue to get back will become more and more confident with our ability to improve the business.

Robert Salmon – Deutsche Bank AG

For Con-way Freights network, could you give us the sense of the magnitude of cost savings from a one percentage improvement in P&D and dock and kind of every 10 basis points to better load?

Stephen L. Bruffett

So on P&D we spend, we spend about $600 million in P&D, about a $175 million on the dock and about $1.4 million in the line-haul network. (Inaudible) $1.4 million in line-haul, so clearly the biggest lever is to increase network efficiency in the line-haul network followed by P&D.

Robert Salmon – Deutsche Bank AG

All right. Thanks a lot for the time guys.

Stephen L. Bruffett

Thanks.

Operator

Your next question comes from the line of Jason Seidl with Dahlman Rose.

Jason Seidl – Dahlman Rose & Co.

Good morning, gentleman.

Douglas W. Stotlar

Good morning.

Jason Seidl – Dahlman Rose & Co.

You guys mentioned that service is at an all time high and I have to believe that if we go back and (inaudible) guys for a long time. You has been sort of the premium carrier in the space getting sort of the premium pricing for a while, it seems like maybe that was slipping. Do you feel that’s coming back from customers that they are willing to pay a premium for using Conway now?

Douglas W. Stotlar

We continue to have a premium in the majority of our network. In our majority of the networks, so most markets we have a premium. And certainly it’s not the premium was in 2004, but like I said our service is better than it’s ever been. We have the fastest network in the LTL industry. We coupled that with a bigger focus on delivering to customers before [knew] during the day. We have 40% of our shipments being delivered for knew now our customers see big value in that. So we expect to be able to maintain the premium in the market.

Jason Seidl – Dahlman Rose & Co.

Okay. Well that’s a great color. Getting back to sort of lean and maybe some of the other initiatives, you gave us some nice color in terms of rolling after the sites you are going to have 10,000 I think out of 21,000 employees covered. Can you talk to us about when you plan to have all 21,000 covered and some of the other sort of timetables or something more than your bigger productivity measures?

Douglas W. Stotlar

Sure. So I would say three years we will have the whole network supported formally with me. Some of the other big initiatives we are going revolve around our understanding of costs in the line-haul network.

We are doing a better job than we ever have of understanding about cubes of each shipment is and that’s critical to better understanding our costs and how we price business. And as we continue to saw our mix of freight in the network, understanding cost is really fundamental of that and is critical to getting better pricing.

On the line-haul side, understanding our cubes gives us better ability to optimize the network on a (inaudible) basis and we are seeing good improvements just on our ability to plan and optimize in the tools that we use to do that.

Jason Seidl – Dahlman Rose & Co.

Okay, that’s great. Thanks, guys. And last question, you mentioned [2.1%] in terms of tonnage per day in April. Can you walk us through the monthly comps for 2Q from 2011?

Stephen L. Bruffett

From 2011?

Jason Seidl – Dahlman Rose & Co.

Yeah, so what are we comparing against? What were the tonnage numbers out there on a monthly basis in 2Q?

Stephen L. Bruffett

Let me get that here. April of 2011 compared to April of 2010, for example, is that answering the question Jason?

Jason Seidl – Dahlman Rose & Co.

Yes, it is.

Stephen L. Bruffett

April then was down 9.2% and May was down 8% and June was down 7.5%.

Jason Seidl – Dahlman Rose & Co.

Okay, perfect. Thank you so much guys. I appreciate the time, as always.

Operator

Your next question comes from the line of Chris Wetherbee with Citi.

Chris Wetherbee – Citi

Hi, thanks. Good morning guys. Maybe a question on the outlook as far as tonnage is concerned, you mentioned that, you won’t necessarily looking to kind of grow the top-line as aggressively. Last year you talked a lot about keeping freight within a band, I think that was for optimizing the network. How should we think about that? Your tonnage on a per day basis is actually going to relatively consistent now three quarters in a row? How do you think about that going forward to the rest of the year and then and does that allow you incremental leverage on some of these efficiency operations of plan that you guys are putting in place?

Stephen L. Bruffett

I would say, yes, our strategy hasn’t change. We should see some seasonal uptick in tonnage as well as just growing small amount of GDP and you have that that provides us great network stability in a great platform to improve efficiencies.

Douglas W. Stotlar

One thing I would add it maybe, which it is characterized early on, its not that we don’t expect the top-line the growth as we do, because rate increases on top of the figure base are going to continue to drive the top-line up. We’re really taking about what we’re expecting from a volume or tonnage increased in the network and really only expecting in a present, present half over the course of the year.

Chris Wetherbee – Citi

Okay. So 1% to 1.5% kind the way we should be thinking about tonnage growth as we go forward for the year?

Douglas W. Stotlar

Correct.

Chris Wetherbee – Citi

Okay. And then when you think about the pricing side of that I mean I’m guessing the strategy is got to be price to the extent that you can without driving a way market share. So you are not looking to gain market share, but at this point it is not really a need or is there a need to potentially adjust the amount of tonnage moving to the network or you kind of where you need to be right now?

Douglas W. Stotlar

No, we’re really not focused on adjusting the tonnage in the network per se call it aggregate basis, but we’re very thoughtful about individual lines and individual customer profiles. And so there is a lot of energy going into making sure we improve the mix and we look at the national and local mix, we look at the amount of freight by lane and we’re using prices and opportunity to attract freight where we needed and perhaps despite where we don’t need it in the network. So it’s a lot more artful than just turning and levering using price to either gain or one-off rate.

Jason Seidl – Dahlman Rose & Co.

Sure. Okay. And then just one final question on Menlo, we haven’t talked too much about it today. It seems like another solid quarter for Menlo. When you think about the run rate going forward visibility into the pipeline, how should we think about kind of the rest of the year? I mean do you have a pretty soft pipeline as we look after the rest of 2012?

Douglas W. Stotlar

Our pipeline is at its highest level (Inaudible) the number of years. So there are plenty of opportunities out there for Menlo. What we need to do obviously is convert those opportunities that are huge into wins and get them on board. So the pipeline is solid for us. We’ve never been more happy in a number of years with the level and quality of the opportunities.

Jason Seidl – Dahlman Rose & Co.

And that’s coming from all of your customer bases and ware house transport services as well?

Douglas W. Stotlar

Right. And it’s global.

Jason Seidl – Dahlman Rose & Co.

Okay. That’s helpful. Thank you for the time. I appreciate it.

Operator

Your next question comes from the line of David Ross with Stifel Nicolaus.

David Ross – Stifel Nicolaus & Company

Yes. Good morning, everyone.

Douglas W. Stotlar

Good morning.

David Ross – Stifel Nicolaus & Company

Question on the LTL side, you talked a lot about line haul efficiency improvements and it’s – but the increase in purchase transportation cost, is there a target level because that went up as a percent of revenue year-over-year and I guess that’s one of the reasons of the empty miles and the economy LTL decline 6.5% in the line haul.

Stephen L. Bruffett

So we don’t look – we don’t have a target for purchase transportation. We’re focused on our load factor and the overall line haul efficiency as the seasons change and our customer mix is in sized overtime, it changes the volume (inaudible) by new phases and we can balance mains with purchase transportation. We are going to do so. One of the measurements that we are looking at in the line-haul network and we just started to look at the couple of quarters is line-haul cost per million of ton miles and that measurement it look as, as low as it’s been since 2006. So clearly, our use of purchase transportation is strategic while we don’t see the negative thing and extracting the (inaudible).

David Ross – Stifel Nicolaus & Company

Do you think that there is a further opportunity for improvement there? Once you settle into a more regular I guess network structure in terms of volumes and lean density where you may replace some of those line-hauls, your purchase moves with company equipment?

Douglas W. Stotlar

Possibly.

David Ross – Stifel Nicolaus & Company

Okay. And then you are understanding the cube of each segment better, which I think very important, but does that mean that you hitting (inaudible) for the docks?

Stephen L. Bruffett

Right now, we’re doing it manually.

David Ross – Stifel Nicolaus & Company

Okay. And then under the Menlo side just real quick. Bob you talk about any business trick change it will help the OR in the quarter whether it’s going to heavier in the (inaudible) management side, the warehousing side, the brokerage side and how much of the revenue growth from new customer wins versus this organic growth?

Robert L. Bianco, Jr.

The ROR has been pretty consistent over the last year or so and so it seems driven our growth there in both revenue and in profit it’s been driven really across the board. So we’re seeing very good growth internationally and improve financial performance in our international operations. Our Con-way multimodal operation, our brokerage operation have seen tremendous growth and its delivering expected margins in that area. And then our [IGES] particularly our automotive industry group has really seen some tremendous growth of late. It won a number of projects that they – in last year that (inaudible) and really has helped drive some growth for us. So I think the combination of all that has led to the results we’re seeing today.

David Ross – Stifel Nicolaus & Company

It’s helpful. And on the auto group, seeing about the strength what type of new projects were those, were those (Inaudible) operations you are managing for customer is that transition management business.

Douglas W. Stotlar

I would stock it on the two areas, one is aftermarket parts. You’ve seen and that’s really in the tier one segment and then in the tier two segment, it’s a lot of material parts to manufacturing. Those type of (Inaudible).

David Ross – Stifel Nicolaus & Company

Excellent. Thank you very much

Douglas W. Stotlar

Thanks, Dave.

Operator

Your next question comes from the line of Tom Wadewitz with JP Morgan.

Tom Wadewitz – JP Morgan

Yes, good morning. Steve, you commented a bit on healthcare and I had one follow-up on that. You said you are at kind of a normal run rate for cost I think in first quarter. Does that imply that if we look to the next couple of quarters, you’d still see a material year-over-year headwind or is that year-over-year headwind that just kind of a first quarter thing and then it’s a lot more moderate looking forward?

Stephen L. Bruffett

Our hope and expectation is that it’s a bit more moderate year-over-year increases as we move forward through the rest of 2012. For example, let me just give you it by quarter consolidated healthcare expenses as we went through 2011. First quarter was 34, second quarter was 43, third quarter was 47, and fourth quarter was 48. So you can see that first quarter of ‘11 was fairly low spot for us as we start this year with 43 and we would expect somewhere in the range or slightly higher than those numbers I’ve cited in the second quarter through the fourth quarter. And that help make sense of that.

Tom Wadewitz – JP Morgan

Yes, you don’t think you will see the same type of build from the 34, 43, 47 in 2011. You think you will see as much of a billed…

Stephen L. Bruffett

Correct.

Tom Wadewitz – JP Morgan

As you look that – be more in the mid-40s range.

Stephen L. Bruffett

Yeah, I think things that settled into what we call more normal seasonal pattern, the expenses are higher in the second half of the year, but the year-over-year increases shouldn’t be as much as can move through 2012.

Tom Wadewitz – JP Morgan

Okay, great. Yeah, that’s helpful, thank you. In terms of a broader question, perhaps for you, Doug, when you look at the demand profile it’s been I guess a little bit unclear how it should be the demand trend, Feb – January, February looks pretty good, March looked like it wasn’t quite as good but may be the comparison was a little more difficult and April feels kind of okay.

How would you view the economy and how you think the market plays out in truckload and LTL in second quarter? And also just in terms of where those markets are adding utilization, are they kind of balanced or a little bit tight so, you can see them really materially tight. And therefore you feel like given slow growth, you will keep kind of a – you are not going to take that that much.

Douglas W. Stotlar

Yeah, I’ll first put this claim but I’m not a economist so I won't try to predict the future, but what I will say is this first quarter was the steadiest demand quarter – first quarter I think I’ve experienced in my career. I mean we could almost guess who within $1 million, a $1.5 million tons a day what we’re going to do in the freight network. It was pretty miraculous and last year we saw some soft patches, now part of that was because of weather operations, but even when the – there wasn’t a lot of weather we were seeing various of weaker demand and we just didn’t see that this year very steady demand. January, February, March and it just continued right through April. So we’re very pleased that the economy is on a steady path certainly not robust, but steady is good right now. So we’re happy with what we see. So we’re anticipating that will to see that same type of demand through the remainder of the second quarter and at least that’s been our experience to-date.

From a supply demand standpoint and the capacity within both LTL and truckload if we promote capacity standpoint it’s about, as good as I’d seen in the last five years. LTL remains, a lot of capacity came out of LTL during the downturn and we’re not seeing capacity coming back into LTL to any consequence. So we believe that’s going to remain in a pretty good balance were in the foreseeable future. And I believe truckload is continues to be on a (inaudible) of a very tight market was continuing to see more pressure on the driver side.

Everything I read about Class 8 tractor purchases is indicating that there isn’t much additional capacity coming in and in fact, there is a lot of fleets that might buy four truck and retire six. And so that type of things happening, where you not even getting – seeing a full replacement cycle. So we believe that we’re in a pretty good position from both the truckload industry and an LTL industry standpoint to keep a supply demand in relative equilibrium.

Tom Wadewitz – JP Morgan

Okay. Great. Thanks for the time.

Operator

Your next question comes from the line of Todd Fowler with KeyBanc Capital Market.

Ryan Cieslak – KeyBanc Capital Markets

Hey, guys, this is Ryan Cieslak on for Todd. Thanks for taking my call.

Douglas W. Stotlar

Sure, Ryan.

Ryan Cieslak – KeyBanc Capital Markets

Doug, I just wanted to go back to your comments on the OR improvement that you are expecting to have in the second quarter relative to the first and I just wanted to get a sense of is there anything that we should be thinking about in regard to your internal initiatives with productivity and the network that’s been initiated here into the second quarter that would provide a benefit that maybe didn’t have in the first?

Douglas W. Stotlar

No, there is no big bank industry this year that will be happening in Q2, it just more the same its blocking and tackling, its execution against the game plan we’ve already outlined, its continuing to get traction from what we’re doing with our lean methodologies and our employee engagement continue and our safety imitative. So this is just a hard work at this point and continuing to execute the strategy that we outlined.

Ryan Cieslak – KeyBanc Capital Markets

Okay. And then the other question I had is on the fleet replacement in freight and truckload. At this point, are we through freight and in to the bulk of this for in year is going to on truckload or what’s the mix of that look like for the balance of the year Steve?

Stephen L. Bruffett

Yeah, our CapEx composition has a very study diet for Con-way Truckload throughout this year I believe it’s about 75 units a month. By the time we get to the end of the year, we will have reached our target fleet ages Con-way Truckload and then largely we work to a maintenance mode for that stream of CapEx. For Con-way Freight, it’s a longer time horizon that we’ve targeted to reach our targeted fleet ages, but in the context of that the 2012 composition of CapEx will largely be completed by late third quarter early fourth, so but within that time frame a pretty even amount of tractors coming in about 750 new units I believe are coming in on that time frame.

Ryan Cieslak – KeyBanc Capital Markets

Okay, great. And then the last question I have is for Herb and congratulations on the upcoming retirement, but in terms of the fleet growth in truckload, how you guys are thinking about that going forward for the balance of the year and if it is more of a maintain, what you guys need to see in the environment from a pricing standpoint or demand standpoint to maybe start to grow that fleet going forward.

Herb Schmidt

Hello, well, Ryan, the only growth really that we have seen is in our owner-operator fleet and it’s been very modest growth at a low point of that 90 owner-operators over the course of last 8 to 9 months, we added about 50 net gain owner-operators. Pricing traction demand would have to be consistently strong for a considerable amount of time before we had an interest in adding net gain equipment. I think that’s pretty much the thought of the entire industry. And that’s what we are seeing across the board in the Truckload segment, everybody is cautiously optimistic. Ryan?

Ryan Cieslak – KeyBanc Capital Markets

Okay, that’s all I have guys, thanks. Appreciate it.

Herb Schmidt

Thank you.

Operator

Your next question comes from the line of Jeff Kauffman with Sterne Agee.

Jeff Kauffman – Sterne Agee

Thank you very much. A lot of my questions have been hit already, but let me ask a question on what kind of equipment you are buying on the Truckload fleet.

Herb Schmidt

We are buying several different types of equipment and combination of (inaudible). We have kind of experimenting in small buckets with all the different truck types to see which best fits our model and it’s nice to have that diversity in our fleet rather seeing if you like it, and it’s gives us a good flavor for capability of all the different manufactures.

Jeff Kauffman – Sterne Agee

Do you have a particular point of view on the engines that were about two years into this SCR/EGR debate?

Herb Schmidt

Little too early to tell. I mean we use primarily SCR technology, the [EGR] technology with Navistar really, those are some of our newer cut. So we want to wait and see what the total cost of operating those units are before I could comment on that accurately.

Ryan Cieslak – KeyBanc Capital Markets

Okay, thank you very much and congratulations.

Unidentified Company Representative

Thanks, John.

Unidentified Company Representative

Thank you.

Operator

We have time for one more question. Your final question comes from the line of Thom Albrecht with BB&T.

Thom Albrecht – BB&T

[Save the best for last]. Congratulations on another round of progress. My question is really kind of two fold. When you look at the consolidated purchase transportation cost, they rose 16% year-over-year and just for freight, they rose about 14%. If you broke that down into a mix of volume base rates and fuel surcharge, can you put both that 16% and 14% in those different buckets for us?

Unidentified Company Representative

We might have – pardon me, I’ll ask Bob to comment on the purchase transportation perhaps on the broader from Menlo, but Greg you want to comment on freights first?

W. Gregory Lehmkuhl

I don’t have that breakdown in front of me. I can get it to you Thom I don’t have it front.

Thom Albrecht – BB&T

Yeah, I’ll be curious because that’s just been one of those things that’s been probably the most tricky to figure out.

W. Gregory Lehmkuhl

I mean a lead time in front of (inaudible). I can get it to you know, in the first quarter of 2012, we reached $263 million. In the first quarter of 2011, we reached $228 million. And that increase is primarily due to the new customers and the new projects and the growth of common multimodal and probably some kind of surcharge.

Thom Albrecht – BB&T

Well, again that’s what I’m trying to get at is how much is like did you pays generally like a 3% base rate increase. We know some part of it is fuel surcharge and then you mentioned a lot of Menlo’s volume just given the growth you are having but do you have a feel for the base rates increase?

Unidentified Company Representative

It’s in the 3% range. We’re pretty close there.

Thom Albrecht – BB&T

And if you look at the whole bucket of just using last year’s $1.4 billion CT expense across all three companies, how much of that was fuel surcharges or is it can you say given the way billing is done.

Unidentified Company Representative

I don’t know how accurately we could quantify that for you.

Unidentified Company Representative

And this is probably this is probably not a level of granularity we’re going to get into as well – especially on the ongoing basics.

Thom Albrecht – BB&T

Okay. And then last question, cargo percentage and workers comp I know you share those annually last year for the first time, do you have a quarterly number as percentage revenues how they performed at freight.

Unidentified Company Representative

So cargo for the quarter was $7.7 million and workers comp for the quarter was just over $10 million.

Thom Albrecht – BB&T

How do those compare?

Unidentified Company Representative

So workers comps up 22%, we had some older claims that hit us in February. Cargo is actually up as well about 17% and that’s really – that’s really mostly driven by first quarter last year. We had some, the way we accrue for claims, we had some pretty big tailwinds of benefit in Q1 last year. Our actual claim is our damage frequency, which is a leading indicator.

Thom Albrecht – BB&T

What those two figures. Are they cargo percentage that claim that was the good leading number?

Stephen L. Bruffett

(Inaudible) it’s a measurement that we don’t publish it’s a damage, it’s a shipments for damage delivery number and if number, that we just track internally and that’s turning very, very well.

Thom Albrecht – BB&T

Okay. And that’s all I have. Thank you.

Stephen L. Bruffett

Okay Thom.

Douglas W. Stotlar

Thank you operator. I think were done. You can give the replay information. Thank you everyone.

Operator

Thank you for participating in Con-way Inc. first quarter 2012 earnings review conference call. This call will be available for replay beginning at 11:30 am Eastern Standard Time today through 11:59 pm Eastern Standard Time on Wednesday, May 16, 2012. The conference ID number for the replay is 67858842. Again, the conference ID number for the replay is 67858842. The number to dial for the replay is 1-855-859-2056, or 1-404-537-3406. This concludes today’s conference. You may now disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Con-Way's CEO Discusses Q1 2012 Results - Earnings Call Transcript
This Transcript
All Transcripts