The company said the primary causes are revenue shortfalls driven by softer than anticipated tonnage levels, pricing pressures and a shift in freight mix.
Increased business activity in March resulted in a strong finish for the first quarter. Volumes to date in the second quarter have not kept pace with March's seasonal recovery. That has resulted in lower revenues and negatively impacted freight rates, Roadway said.
Following the September closure of Consolidated Freightways, Roadway Express experienced two quarters of significantly increased tonnage and stable pricing. However, president James D. Staley said it appears the longevity of the weak economy and excess capacity that still remains in the industry have begun to dilute those gains.
"The demise of Consolidated Freightways has proven to be a double-edged sword," said president James D. Staley. "The business made available was welcome, but quickly absorbed due to surplus capacity."