Roadway revenues rise, but income falls

Roadway Corp. today reported revenues of $2.79 billion for the year ended December 31, 2001, down 8.2%, when compared to revenues of $3.04 billion in 2000. However, net income for the year decreased 45.5% to $30,837,000, or $1.64 per diluted share, when compared to net income of $56,542,000, or $2.98 per share, for 2000. For Roadway Express and its subsidiaries, which constituted 99% of the company’s

Roadway Corp. today reported revenues of $2.79 billion for the year ended December 31, 2001, down 8.2%, when compared to revenues of $3.04 billion in 2000. However, net income for the year decreased 45.5% to $30,837,000, or $1.64 per diluted share, when compared to net income of $56,542,000, or $2.98 per share, for 2000.

For Roadway Express and its subsidiaries, which constituted 99% of the company’s annual volume in 2001, business levels as indicated by total tonnage were down 12.6%. LTL tonnage was down 12.5%, and truckload tonnage decreased by 13.0%. In 2001, revenue per ton increased 4.0% versus last year.

“Due to the continuing downturn in the national economy, our business volumes were depressed going into the fourth quarter," said Michael W. Wickham, chairman & CEO of Roadway. "With the events of September 11, they dipped even further, but fairly quickly returned to their previously soft levels."

Wickham said the results reflect the company's strategy to keep costs variable, and also that its pricing environment continued to be relatively stable.

Roadway bought Arnold Transportation Services (ATS) and New Penn Motor Express on November 30, 2001 to expand regional trucking in the Northeast. As part of the $491 million purchase, Roadway sold freight manager Arnold Logistics back to Edward Arnold, former CEO of ATS.

Wickham said Roadway expects New Penn and ATS to materially contribute to its forward financial performance, and New Penn’s knowledge should figure prominently in its growth plans.

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