Con-way (CNW) Sounds Red Alert For Economic Slowdown

Shares of trucker Con-way Inc. (NYSE: CNW) are under heavy pressure today, down 18%, after lowering 2008 EPS estimates and making cautious comments that volumes are weak and that the traditional peak seasonal uptick in demand has been muted.

After the close yesterday, Con-way said it now sees 2008 EPS between $2.60 and $2.80, below the company's prior guidance of $3.00 and $3.40 and well below the consensus is $3.22.

Douglas W. Stotlar, president and chief executive officer of Con-way Inc. said, "The economy has been battered by an unprecedented confluence of macroeconomic crises, curtailing demand for freight transportation services. Over the past several weeks we have seen volumes decline further, exacerbated by September's weather events, all of which continue to pressure yields. To date, the traditional peak seasonal uptick in demand has been muted so we expect the challenging business environment to continue through the 2008 fourth quarter."

A number of other trucking companies are seeing weakness today on the Con-way warning. JB Hunt (Nasdaq: JBHT) is down 12%, Landstar (Nasdaq: LSTR) down 12%, Werner Enterprise (Nasdaq: WERN) down 10%, Heartland Express (Nasdaq: HTLD) is down 7%, Knight Trans (NYSE: KNX) is down 8%, Old Dominion (Nasdaq: ODFL) is down 13%, Arkansas Best (Nasdaq: ABFS) is down 13%, YRC Worldwide (Nasdaq: YRCW) is down 12%.

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