Roadway Corp. posted a loss of $3.4 million, or 18 cents a share, for the third quarter ended Sept. 3, compared with a profit of $6.94 million, or 36 cents a share, a year ago.
The Akron, Ohio-based carrier was hurt by charges related to its upcoming acquisition by Yellow Corp., according to the Associated Press.
However, excluding those charges, the truckload carrier beat its own earnings projections. Roadway also backed its estimates for the full year.
Before acquisition charges, net income for the quarter would have been $13.5 million, or 71 cents a share. Roadway agreed last summer to be acquired by Yellow Corp. for $966 million.
The $24.3 million in charges were mostly for the vesting of restricted stock awards, other compensation expense and transaction costs, Roadway said.
Revenue for the third quarter ended Sept. 13 rose 10% to $751,594,000 from $681,696,000 a year ago.
James D. Staley, president and CEO of Roadway, said, "We are pleased to report that our operating subsidiaries performed quite well. The 10% rise in revenues, combined with effective expense control, resulted in a 64% increase in operating income, before the recognition of $24.3 million in acquisition-related charges. These charges resulted primarily from the vesting of restricted stock awards, other compensation expense and transaction costs. The company's effective tax rate has shifted from 42% to 53.6% as a result of these acquisition-related costs.
"Roadway Express implemented a 5.9% general freight rate increase on non-contract freight effective July 13. During the quarter, Roadway Express increased its yield per ton by 4.3% while increasing tonnage levels 6.4% above the same period last year. Roadway Express has not experienced any meaningful diversion of freight or customer flight due to the planned Yellow/Roadway acquisition. Overall, our customers seem to be more positive about the direction of the economy, although real economic growth is coming slowly," Staley said.
Looking forward, the company anticipates full-year 2003 revenue to increase approximately 7% to 8%, and earnings-per-share from continuing operations, excluding the impact of acquisition-related charges, to be consistent with previously provided guidance of between $2.36 and $2.60 compared to $1.85 in 2002. Including acquisition-related charges and the higher effective tax rate, the company expects earnings-per-share for full-year 2003 to be in the range of $1.36 to $1.60 excluding any future acquisition-related charges.
Fourth quarter 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 same period in 2002.
Acquisition Charges Dampen Roadway’s 3rd Quarter
Roadway Corp. posted a loss of $3.4 million, or 18 cents a share, for the third quarter ended Sept. 3, compared with a profit of $6.94 million, or 36 cents a share, a year ago
More Drivers

Best Fleets to Drive For: Two Carriers Earn Overall Award for First Time
CarriersEdge announced the 2026 Best Fleets to Drive For overall winners, with Crawford Trucking, Fortigo Freight Services, and FTC Transportation receiving top awards.
Read More →
Federal Proposal Would Allow Pell Grants for Shorter-Term Job Training
The Department of Labor plans to expand Pell Grant eligibility to some shorter workforce training programs, a move the American Trucking Associations said will help strengthen commercial driver training schools and diesel technician training programs.
Read More →
Owner-Operator Model Gets Boost as DOL Proposes 2024 Independent Contractor Definition Reversal
For an industry that has watched this issue go back and forth for years, the independent contractor proposal marks the latest swing in the regulatory pendulum.
Read More →
FMCSA Reinstates Field Warrior ELD to Registered Device List
One electronic logging device has been reinstated to the FMCSA's list of registered ELDs.
Read More →
How One Company is Using Smart Suspension Technology to Reduce Driver Injuries and Improve Retention
America’s Service Line adopted Link’s SmartValve and ROI Cabmate systems to address whole-body vibration, repetitive strain, and driver turnover. The trucking fleet is already seeing measurable results.
Read More →
CarriersEdge Announces 2026 Best Fleets to Drive For
The 18th annual contest recognizing the best workplaces for truck drivers sees changes to Top 20, Hall of Fame
Read More →
FMCSA Targets 550+ ‘Sham’ CDL Schools in Nationwide Sting Operation
The Federal Motor Carrier Safety Administration issued more than 550 notices of proposed removal to commercial driver training providers following a five-day nationwide enforcement sweep. Investigators cited unqualified instructors, improper training vehicles, and failure to meet federal and state requirements.
Read More →
DOT Alleges Illinois Issued Illegal Non-Domiciled CDLs
Illinois is the latest state targeted and threatened with the loss of highway funding by the U.S. Department of Transportation in its review of states' non-domiciled CDL issuance procedures. The state is pushing back.
Read More →
FMCSA Locks in Non-Domiciled CDL Restrictions
After a legal pause last fall, FMCSA has finalized its rule limiting non-domiciled commercial driver's licenses. The agency says the change closes a safety gap, and its revised economic analysis suggests workforce effects will be more gradual than first thought.
Read More →
Trucker Path Names Top Truck Stops for 2026
Truck driver ratings reveal the best chain and independent truck stops in the country.
Read More →
