Roadway Corp., Akron, Ohio, on Tuesday reported that revenues for its first quarter, which ended March 23, were $637.17 million, down 2% when compared to revenues of $650.49 million for the first quarter of 2001.

The motor carrier reported a net loss of $1.95 million, or $0.09 per share, compared to net income of $4.99 million, or $0.26 per share (diluted), for the first quarter of 2001.
"Continuing sluggishness in the economy, combined with our traditionally slow first quarter, resulted in business levels substantially lower than we anticipated," said Michael W. Wickham, Chairman and CEO.
In the first four weeks of January, daily tonnage levels at Roadway Express, the company’s largest operating unit, were 18% below the same period last year, and at their lowest point in fifteen years. For the balance of the quarter, Roadway Express saw tonnage levels improve. In the four week February accounting period, daily tonnage improved 8% over January's levels. And in March, daily tonnage was up 12% over January. For the quarter, daily tonnage was 14.5% below last year's levels.
“Excluding January, Roadway Express' performance met operating income expectations and was on budget. During the quarter, freight rate levels continued to hold firm," Wickham said.
Roadway also reported at New Penn Motor Express, volume levels improved following the February closure of a significant competitor. The company says these increases did not offset the tonnage declines New Penn experienced in January and the first half of February, however, they note the subsequent reduction of next-day capacity in the Northeast appears to have returned New Penn to business levels comparable to those of a year ago.
According to Wichham, “From an operating standpoint, New Penn was solidly profitable."
Arnold Transportation Services, the corporation's truckload carrier, experienced business levels similar to those of last year and also showed positive operating results.
Wichham says, "We were able to effectively manage variable costs against these lower business levels. However, interest related to our November 30, 2001 acquisition of Arnold Industries was greater than the quarter's operating profit. Take away the severe declines of our shortened, 18-day January operating period, and the company would have been profitable.”
"Despite a poor start to the year, we remain confident in our solid financial position and our strategic plans for future growth,” says Wickham. "Assuming that underlying economic conditions improve, and business volumes return to 2001 levels over the balance of 2002, the corporation expects its operating ratio, on a combined basis, to improve by one-half to one percent over last year.”