Roadway extends Arnold offer despite income drop

Oct. 8, 2001
Having temporarily suspended acquisition negotiations with Arnold Industries to buy the company’s logistics operations because of the terrorist attacks on Sept. 11, less-than-truckload conglomerate Roadway Corp. of Akron, OH, says it will extend the negotiation period until October 26. It has offered $105 million in cash for the Arnold operations. Roadway says the attack, combined with a poor overall
Having temporarily suspended acquisition negotiations with Arnold Industries to buy the company’s logistics operations because of the terrorist attacks on Sept. 11, less-than-truckload conglomerate Roadway Corp. of Akron, OH, says it will extend the negotiation period until October 26. It has offered $105 million in cash for the Arnold operations.

Roadway says the attack, combined with a poor overall economy, has also resulted in a falloff in revenue and net income. For Roadway’s first three quarters, the carrier reports that net income dropped 44.8% to $17.1 million, from net income of $31.1 million for the same period in 2000. For the first three quarters of 2001, revenues totaled $1.92 billion, a decrease of 7.6% when compared to revenues of $2.08 billion for the first three quarters of last year.

In the third quarter, Roadway says total tonnage was down 13.2% from third quarter 2000 levels. LTL tons were down 13.2% and truckload tonnage was down 13.1%. Revenue per ton for the quarter increased 4.1% and operating expenses per ton rose 4.6% over 2000, according to the carrier.

Despite those results, Michael W. Wickham, Roadway’s chairman and CEO, says the acquisition of Arnold is moving ahead as planned. He also expects the LTL pricing environment to remain stable and anticipates Roadway’s fourth quarter operating ratio will improve by approximately 1/2 to one point when compared to the quarter just ended.

About the Author

Sean Kilcarr | Editor in Chief

Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!