AKRON (Oct. 1, 2003)—Roadway Corp. reported a 10-percent increase in revenues for the third quarter, but expenses related to its acquisition by trucking company Yellow Corp. helped push earnings to a loss of $3.40 million for the quarter.
Third-quarter sales were $751.6 million compared with same-quarter sales in 2002 of $681.7 million, Roadway said.
Without $24.3 million in acquisition-related charges, Roadway would have posted a net income of $13.5 million, compared with $6.94 million last year, the Akron-based trucking firm said. The $1.1 billion Yellow acquisition still is pending, but it is expected to close by year-end.
“Roadway Express implemented a 5.9 percent general freight increase on non-contract freight effective July 13,” said James Stanley, president and CEO of Roadway. “During the quarter, Roadway Express increased its yield per ton by 4.3 percent while increasing tonnage levels 6.4 percent 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.”
The company expects 2003 revenue to grow 7-8 percent, excluding more acquisition-related charges.