Roadway chairman Michael W. Wickham said the carrier encountered two significant issues in the third quarter – a slow economic recovery and the closing of rival Consolidated Freightways (CF), which he said "permanently altered the less-than-truckload freight environment."
Roadway's third quarter ended September 7, and CF ceased operations September 2. However, Wickham said the shutdown was "unprecedented in its magnitude and abruptness."
"With the additional business, we will recall all of our laid off employees and be able to hire some of the displaced CF employees," Wickham said. "Most of them are good, experienced workers and will be valuable in helping us handle the influx of business we are experiencing. We believe we are well-positioned to take on a substantial portion of the CF business at a Roadway price."
Wickham added that in the first three weeks following CF's closure, Roadway Express's tonnage increased 17% over seasonal patterns. However, he said it's too early to tell how the capacity shift will impact the company's fourth-quarter results.
For the first three quarters of 2002, Roadway's revenues were $2,055,626,000, up 6.8% when compared to revenues of $1,924,251,000 for the first three quarters of last year. Its net income during that time was $10,861,000, a decrease of 36.8% when compared to a net income of $17,186,000.