Deutsche Bank: Cost Inflation Likely to Accelerate in 2012 for Con-way

According to a research report published today by Deutsche Bank, Con-way Inc.'s

poor performance at Con-way Freight drove the previous miss and overwhelmed the otherwise solid reports. “Thursday after the close, CNW reported Q4 adjusted EPS of $0.26, below our estimate of $0.35 and Consensus of $0.37. Adjusted EPS excludes a $10 million ($0.15/share) gain on a purchase-price adjustment related to the 2007 acquisition of Chic Logistics. Poor performance at Con-way Freight drove the miss as cost overruns prevented much of the margin improvement we had been expecting,” Deutsche Bank said in the report. Deutsche Bank reiterates its Hold rating and $30 PT on Con-way, which closed Friday at $30.71.