Conway lowers 2008 earnings forecast

The San Mateo, Calif.-based company expects to report earnings from continuing operations of $2.60 to $2.80 a share, down from the prior forecast of $3 to $3.40 a share.

Analysts polled by Thomson Reuters expected, on average, 2008 earnings of $3.22 a share.

"The economy has been battered by an unprecedented confluence of macroeconomic crises, curtailing demand for freight transportation services," Douglas Stotlar, Con-way's chief executive, said in a statement.

He said business has declined in the past several weeks and the peak seasonal uptick in demand has been "muted." Stotlar expects the slowdown to continue through the fourth quarter.

Con-way is set to report third-quarter earnings on Oct. 22 after the market's close.

Shares of Con-way fell by $1.17, or 2.6 percent, to $42.94 on Wednesday and shed $2.07, or 4.8 percent, to $40.87 in after-hours trading.