Roadway Corp. reports revenues for its second quarter, which ended June 21, 2003, were $741,528,000, up 13% when compared to revenues of $656,003,000 for the second quarter of 2002.
The company reported net income of $6,308,000, or $0.33 per share, compared to net income of $5,674,000, or $0.30 per share, for the second quarter of 2002.
For the 24 weeks constituting the company's first half, net income was $14,318,000, or $0.75 per share, an increase of 265% when compared to a net income of $3,925,000, or $0.21 per share for the same period in 2002. For the first half of 2003, revenues were $1,495,598,000, up 19% when compared to revenues of $1,254,970,000 for the first half of last year.
The first half of 2003 contained four more working days than the same period in 2002.
James D. Staley, president and CEO of Roadway Corp. said, "Despite continuing weakness in the economy and excess capacity that still remains following the closure of Consolidated Freightways, Roadway Corp. achieved a 13% increase in revenues and a 43% increase in income from continuing operations.
"In 2002, Consolidated Freightways' closure came in the fourth quarter, our busiest season. The business made available from Consolidated's shutdown was quickly and completely absorbed due to economic softness and surplus capacity.
"By the second quarter of 2003, continuing economic slowness and seasonal shipping patterns freed additional capacity to the marketplace, increasing pricing pressures. While the long-haul industry experienced significant capacity contraction from Consolidated's closure, regional markets remain extremely competitive, and Roadway Express' volumes and base rates in those segments have been additionally impacted. We remain committed to compensatory rate levels and believe our July 13, general freight rate increase of 5.9% will help improve revenue yield, especially as we re-enter the busiest season of our annual cycle," Staley said.
"In the second quarter, Roadway Express also began to experience a shift in its freight mix, where the company saw some loss of higher-yielding time-critical freight and changes in shipment size and length-of-haul that resulted in revenue rate deterioration. This was particularly evident in the retail segment where Express has a significant portion of its business. We are taking steps to make certain that freight is correctly priced and to review all new business to ensure it is properly contributing to the company's profitability," Staley continued.
"Looking forward, we anticipate revenue growth in the third quarter of 2003 will be between 11.5% and 12.5% and earnings per share from continuing operations are expected to be in the range of $0.60 to $0.70 compared to $0.33 for the same period a year ago. For full-year 2003, we anticipate revenue growth to be between 8.5% and 9.5% and earnings-per-share from continuing operations are expected to be in the range of $2.36 to $2.60 compared to $1.85 in 2002.
"Fourth quarter 2003, year-over-year comparisons will be more difficult, as the impact of Consolidated Freightways' closure was already included in the fourth quarter of 2002 and the period will have four less working days than the second half of 2002," Staley concluded.
The company reported net income of $6,308,000, or $0.33 per share, compared to net income of $5,674,000, or $0.30 per share, for the second quarter of 2002.
For the 24 weeks constituting the company's first half, net income was $14,318,000, or $0.75 per share, an increase of 265% when compared to a net income of $3,925,000, or $0.21 per share for the same period in 2002. For the first half of 2003, revenues were $1,495,598,000, up 19% when compared to revenues of $1,254,970,000 for the first half of last year.
The first half of 2003 contained four more working days than the same period in 2002.
James D. Staley, president and CEO of Roadway Corp. said, "Despite continuing weakness in the economy and excess capacity that still remains following the closure of Consolidated Freightways, Roadway Corp. achieved a 13% increase in revenues and a 43% increase in income from continuing operations.
"In 2002, Consolidated Freightways' closure came in the fourth quarter, our busiest season. The business made available from Consolidated's shutdown was quickly and completely absorbed due to economic softness and surplus capacity.
"By the second quarter of 2003, continuing economic slowness and seasonal shipping patterns freed additional capacity to the marketplace, increasing pricing pressures. While the long-haul industry experienced significant capacity contraction from Consolidated's closure, regional markets remain extremely competitive, and Roadway Express' volumes and base rates in those segments have been additionally impacted. We remain committed to compensatory rate levels and believe our July 13, general freight rate increase of 5.9% will help improve revenue yield, especially as we re-enter the busiest season of our annual cycle," Staley said.
"In the second quarter, Roadway Express also began to experience a shift in its freight mix, where the company saw some loss of higher-yielding time-critical freight and changes in shipment size and length-of-haul that resulted in revenue rate deterioration. This was particularly evident in the retail segment where Express has a significant portion of its business. We are taking steps to make certain that freight is correctly priced and to review all new business to ensure it is properly contributing to the company's profitability," Staley continued.
"Looking forward, we anticipate revenue growth in the third quarter of 2003 will be between 11.5% and 12.5% and earnings per share from continuing operations are expected to be in the range of $0.60 to $0.70 compared to $0.33 for the same period a year ago. For full-year 2003, we anticipate revenue growth to be between 8.5% and 9.5% and earnings-per-share from continuing operations are expected to be in the range of $2.36 to $2.60 compared to $1.85 in 2002.
"Fourth quarter 2003, year-over-year comparisons will be more difficult, as the impact of Consolidated Freightways' closure was already included in the fourth quarter of 2002 and the period will have four less working days than the second half of 2002," Staley concluded.
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