Roadway Corp., Akron, Ohio, saw income and revenues down from last year, but reported better results than the first two quarters of this year.
The company reported net income of $8.17 million, or $0.43 per share for its third quarter, which ended Sept. 8. This is 25 percent less than net income in the third quarter of 2000. Revenues for the third quarter of 2001 were $631.66 million, down 10 percent from last year.
For the first three quarters of the year, net income was down 45 percent from last year and revenues were down 8 percent from last year.
In the third quarter, total tonnage was down 13 percent from third quarter 2000 levels. However, revenue per ton for the quarter increased 4 percent. Yet operating expenses per ton rose nearly 5 percent over last year.
"We are pleased to report that our operations showed continued improvement, as our third quarter results surpassed those of either of our first two quarters," said Michael W. Wickham, chairman and CEO. "While pricing remained firm during the quarter, softness in the general economy reduced our tonnage levels slightly more than we anticipated. On the other hand, we successfully managed our costs against our volumes without taking drastic actions that could harm our business over the long term. While we are not satisfied with our year-over-year results, we were able to meet our expectations and the quarter's operating ratio deteriorated by less than one-half of a percent."
Wickham said while the long-term effects on Roadway's business from the New York and Washington terrorist attacks have yet to be determined, the company does not expect them to be significant, either in terms of either lost business, or increased volumes from air cargo shipping changes.
"Looking ahead, we expect business levels to remain well below last year," Wickham said. "The LTL pricing environment is expected to remain stable, with late summer pricing adjustments in place. We anticipate our fourth quarter operating ratio will improve by approximately 1/2 to one point when compared to the quarter just ended."
The company reported net income of $8.17 million, or $0.43 per share for its third quarter, which ended Sept. 8. This is 25 percent less than net income in the third quarter of 2000. Revenues for the third quarter of 2001 were $631.66 million, down 10 percent from last year.
For the first three quarters of the year, net income was down 45 percent from last year and revenues were down 8 percent from last year.
In the third quarter, total tonnage was down 13 percent from third quarter 2000 levels. However, revenue per ton for the quarter increased 4 percent. Yet operating expenses per ton rose nearly 5 percent over last year.
"We are pleased to report that our operations showed continued improvement, as our third quarter results surpassed those of either of our first two quarters," said Michael W. Wickham, chairman and CEO. "While pricing remained firm during the quarter, softness in the general economy reduced our tonnage levels slightly more than we anticipated. On the other hand, we successfully managed our costs against our volumes without taking drastic actions that could harm our business over the long term. While we are not satisfied with our year-over-year results, we were able to meet our expectations and the quarter's operating ratio deteriorated by less than one-half of a percent."
Wickham said while the long-term effects on Roadway's business from the New York and Washington terrorist attacks have yet to be determined, the company does not expect them to be significant, either in terms of either lost business, or increased volumes from air cargo shipping changes.
"Looking ahead, we expect business levels to remain well below last year," Wickham said. "The LTL pricing environment is expected to remain stable, with late summer pricing adjustments in place. We anticipate our fourth quarter operating ratio will improve by approximately 1/2 to one point when compared to the quarter just ended."
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