ROADWAY CORP. 2ND-QUARTER NET INCOME REBOUNDS
Roadway Corp., the group of truckload and less-than-truckload motor carriers, said its net income rose 41 percent to $5.7 million for the fiscal second quarter ended June 15.
The Akron, Ohio-based company's second-quarter results outperformed First Call analysts' projections by 20 percent. Operating income jumped 168 percent to $16.5 million, while revenue rose 8.6 percent to $697.1 million. Operating ratio improved 1.4 percentage points to 97.6 percent.
Net income for the first half of its 2002 fiscal year, however, fell 56 percent to $3.9 million, on revenues of $1.33 billion, up 3.2 percent. Operating income rose slightly, to $20.4 million.
'Coming out of a January trough, Roadway Express' less-than-truckload volumes showed steady, but slow-paced improvement in every accounting period of our first two quarters,' said Michael W. Wickham, chairman and chief executive officer of Roadway Corp. 'Helped by industry consolidation in the Northeast, New Penn Motor Express, our next-day regional ground carrier, has already seen its business volumes return to 2001 levels. In addition, business levels at our full-truckload subsidiary, Arnold Transportation Services, showed year-over-year improvement.'
Roadway Corp. acquired New Penn Motor Express and Arnold Transportation Services on Nov. 30.
Wickham said Roadway Corp. expects improved results in the second half of 2002. 'For the third and fourth quarters, we expect to see a margin improvement of between 0.5 and 1 percent,' he said.
