Roadway Corp. says its revenues for the 16 weeks constituting the company's fourth quarter were $1,074,110,000, up 25.7% when compared to revenues of $854,640,000 for the same period last year.
For the fourth quarter of 2002, the company reported income from continuing operations of $25,923,000, or $1.37 per share (diluted), compared to income from continuing operations of $13,477,000, or $0.72 per share (diluted), for the fourth quarter of 2001. The quarter ended Dec. 31, 2002.
Also in the fourth quarter, the company (including Arnold Transportation Services' results) reported net income of $28,063,000, or $1.48 per share (diluted) compared to net income of $13,651,000, or $0.73 per share (diluted), for the fourth quarter of 2001.
For the year ending Dec. 31, 2002, revenues were $3,010,776,000, up 8.3% when compared to revenues of $2,778,891,000 for the year ended 2001. Income from continuing operations was $35,142,000, or $1.85 per share (diluted), an increase of 14.6% when compared to income from continuing operations of $30,663,000, or $1.63 per share (diluted), for the year ended 2001.
And net income for the company (including ATS' results) was $38,924,000, or $2.05 per share (diluted), an increase of 26.2% when compared to net income of $30,837,000, or $1.64 per share (diluted), for the year ended 2001.
Michael W. Wickham, chairman of the board of directors and CEO said, "We are pleased to end 2002 with a strong fourth quarter and reasonable optimism for the future. We began 2002 with concern over the economy, and in January experienced tonnage levels at their lowest point in 15 years. Throughout the year, the economy lacked energy and never shifted into the long awaited recovery mode. The closure of a major competitor in September and the resulting reduction of industry capacity was a turning point that led to record fourth-quarter revenues and operating income for Roadway Express and the corporation.
"The reduction of industry capacity caused by the shutdown of Consolidated Freightways has not overly taxed our system and we are able to meet our customers' requirements. We do not anticipate the need to add capacity until the general economy grows five to six percent on a year-over-year basis. As might be expected, such a large reduction in capacity has firmed our segment's pricing environment considerably," Wickham added.
"In December, we announced an agreement to sell Arnold Transportation Services, which as a truckload carrier is not core to our LTL strategy. We believe the short-term earnings reduction caused by the sale of ATS will be partially offset by our use of most of the sale proceeds to pay down debt and generate savings from lower interest expense. Overall, this sale better positions the corporation to pursue additional LTL opportunities," Wickham said.
Looking forward, Wickham said international unrest, the state of the general economy, industry capacity and the ultimate outcome of Roadway's contract negotiations have the potential to impact the company's longer-term outlook.
"If current trends continue, we expect daily revenue growth during the first quarter to be in the range of 17 to 22%," Wickham said. "We anticipate our operating margin will be between 2 and 2 1/2 points. We will provide annual guidance when the current labor negotiations are concluded."
For the fourth quarter of 2002, the company reported income from continuing operations of $25,923,000, or $1.37 per share (diluted), compared to income from continuing operations of $13,477,000, or $0.72 per share (diluted), for the fourth quarter of 2001. The quarter ended Dec. 31, 2002.
Also in the fourth quarter, the company (including Arnold Transportation Services' results) reported net income of $28,063,000, or $1.48 per share (diluted) compared to net income of $13,651,000, or $0.73 per share (diluted), for the fourth quarter of 2001.
For the year ending Dec. 31, 2002, revenues were $3,010,776,000, up 8.3% when compared to revenues of $2,778,891,000 for the year ended 2001. Income from continuing operations was $35,142,000, or $1.85 per share (diluted), an increase of 14.6% when compared to income from continuing operations of $30,663,000, or $1.63 per share (diluted), for the year ended 2001.
And net income for the company (including ATS' results) was $38,924,000, or $2.05 per share (diluted), an increase of 26.2% when compared to net income of $30,837,000, or $1.64 per share (diluted), for the year ended 2001.
Michael W. Wickham, chairman of the board of directors and CEO said, "We are pleased to end 2002 with a strong fourth quarter and reasonable optimism for the future. We began 2002 with concern over the economy, and in January experienced tonnage levels at their lowest point in 15 years. Throughout the year, the economy lacked energy and never shifted into the long awaited recovery mode. The closure of a major competitor in September and the resulting reduction of industry capacity was a turning point that led to record fourth-quarter revenues and operating income for Roadway Express and the corporation.
"The reduction of industry capacity caused by the shutdown of Consolidated Freightways has not overly taxed our system and we are able to meet our customers' requirements. We do not anticipate the need to add capacity until the general economy grows five to six percent on a year-over-year basis. As might be expected, such a large reduction in capacity has firmed our segment's pricing environment considerably," Wickham added.
"In December, we announced an agreement to sell Arnold Transportation Services, which as a truckload carrier is not core to our LTL strategy. We believe the short-term earnings reduction caused by the sale of ATS will be partially offset by our use of most of the sale proceeds to pay down debt and generate savings from lower interest expense. Overall, this sale better positions the corporation to pursue additional LTL opportunities," Wickham said.
Looking forward, Wickham said international unrest, the state of the general economy, industry capacity and the ultimate outcome of Roadway's contract negotiations have the potential to impact the company's longer-term outlook.
"If current trends continue, we expect daily revenue growth during the first quarter to be in the range of 17 to 22%," Wickham said. "We anticipate our operating margin will be between 2 and 2 1/2 points. We will provide annual guidance when the current labor negotiations are concluded."
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