ROADWAY EXPRESS SEES 52% DROP IN FIRST-QUARTER INCOME

ROADWAY EXPRESS SEES 52% DROP IN FIRST-QUARTER INCOME

   Roadway Express Inc., the Akron, Ohio-based motor carrier, said first-quarter net income fell 52 percent to $4.99 million.

   'The first-quarter result included a one-time non-operating charge of $3.5 million from a legal judgment which the company said it will appeal.

   Besides the charge, the company blamed the earnings dip on the weakening U.S. economy and severe winter weather.

   Net revenue fell 4 percent to $650.5 million, while operating income was down 18.7 percent to $14.1 million.

   Tonnage decreased 10.4 percent as less-than-truckload tonnage was down 9.7 percent and truckload tonnage fell 13.3 percent.

   Michael W. Wickham, chairman and chief executive officer of Roadway Express, said the company has taken steps to manage costs and reduce the impact on earnings since business level declines started in the third quarter of 2000.

   “Over the past several weeks, we have not seen a significant change in our business volumes or pricing environment,” Wickham said. “Looking forward, our second quarter will include modest, contractual wage and benefit increases, and our operating performance will continue to be impacted by the economic environment.”