Roadway Tops Lowered Estimates; ‘Mildly Optimistic’ on Rest of Year

Roadway Corp. (ROAD) on Tuesday reported net income of $4,023,000, or $0.22 per share for its second quarter ended June 16, which topped lowered expectations but was down nearly 60% from the same quarter in 2000.

Chairman and Chief Executive Officer Michael Wickham said that although the company hasn’t seen a recovery, it does appear that business levels are beginning to stabilize. He also said he was “mildly optimistic” about the second half of the year.

On May 31 the Akron, Ohio-based company said that second-quarter profit would be at least 60% less than the 52 cents it earned in 2000. Based on that warning, analysts lowered their estimates to 18 cents per share, according to Reuters.

For the quarter, Roadway’s tonnage levels were down 13.3% compared to 2000, especially in the less-than-truckload shipment segment, but freight rate levels were stable during the quarter.

Revenues were $642,109,000, down 9.2% when compared to revenues of $707,359,000 for the second quarter of 2000.

Roadway Express is ranked number No. 6 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics

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