Turning to our financial results for the fourth quarter of 2011, Con-Way reported consolidated revenues of 1.32 billion, up 8.7% over last year’s 1.21 billion. On an operating income basis, we earned 49.9 million in the 2011 fourth quarter, which included a 10 million gain from the settlement of a dispute related to Chic Logistics. This compared to the 15.8 million we reported in the fourth quarter of last year.
Diluted earnings per share were $0.41 compared to $0.04 per share in the prior year period. On a non-GAAP basis, earnings per diluted share in the 2011 fourth quarter were $0.26 compared to $0.02 in the prior year. Looking at the full year for 2011, Con-Way reported revenue of 5.29 billion, a 6.8% increase from 2010. Net income for 2011 was $1.58 per diluted share or 88.4 million compared to $0.07 per share or 4 million in 2010. On a non-GAAP basis, 2011’s full-year earnings came in at $1.53 per share compared to $0.47 in 2010.
Moving now to a review of our business segments, I’ll start with Con-Way Freight, our LTL company and largest revenue segment. Con-Way Freight posted fourth quarter operating income of 19.6 million compared to 1.8 million earned in the fourth quarter a year ago. Operating discipline improved network balance, prudent cost management and steady increases in pricing all contributed to the quarter’s results. Revenue was 796.2 million, an 8.2% increase over last year’s revenue of 736 million. This increase was mostly the result of improved pricing and higher fuel surcharge revenue. Con-Way Freight’s operating ratio this period was 97.5 compared to 99.8 in last year’s fourth quarter.
Tonnage per day, which increased 8/10ths of a percent over last year’s fourth quarter, reflected normal seasonal trends. Revenue per hundredweight or yield increased 8.3% in the quarter compared to the prior year. Excluding fuel surcharge, the increase in yield was 4.3%.