Roadway 8-K Financial statements and exhibits

Exhibit 99.1

CONTACT:

John M. Hyre

Investor and Public Relations

330-258-6080

ROADWAY CORPORATION’S SECOND QUARTER 2003 EPS $0.33
INCOME FROM CONTINUING OPERATIONS UP 43%

AKRON, Ohio – July 8, 2003 – Roadway Corporation (Nasdaq: ROAD) today reported that revenues for its second quarter, which ended June 21, 2003, were $741,528,000, up 13% when compared to revenues of $656,003,000 for the second quarter of 2002. The Company reported net income of $6,308,000, or $0.33 per share (diluted), compared to net income of $5,674,000, or $0.30 per share (diluted), for the second quarter of 2002.

For the 24 weeks constituting the Company’s first half, net income was $14,318,000, or $0.75 per share (diluted), an increase of 265% when compared to a net income of $3,925,000, or $0.21 per share (diluted), for the same period in 2002. For the first half of 2003, revenues were $1,495,598,000, up 19% when compared to revenues of $1,254,970,000 for the first half of last year. The first half of 2003 contained four more working days than the same period in 2002.

James D. Staley, President and CEO of Roadway Corporation stated, “Despite continuing weakness in the economy and excess capacity that still remains following the closure of Consolidated Freightways, Roadway Corporation achieved a 13% increase in revenues and a 43% increase in income from continuing operations.”

“In 2002, Consolidated Freightways’ closure came in the fourth quarter, our busiest season. The business made available from Consolidated’s shutdown was quickly and completely absorbed due to economic softness and surplus capacity. By the second quarter of 2003, continuing economic slowness and seasonal shipping patterns freed additional capacity to the marketplace increasing pricing pressures. While the long-haul industry experienced significant capacity contraction from Consolidated’s closure, regional markets remain extremely competitive and Roadway Express’ volumes and base rates in those segments have been additionally impacted. We remain committed to compensatory rate levels and believe our July 13, general freight rate increase of 5.9% will help improve revenue yield, especially as we re-enter the busiest season of our annual cycle,” Staley said.

“In the second quarter, Roadway Express also began to experience a shift in its freight mix, where the company saw some loss of higher-yielding time-critical freight and changes in shipment size and length-of-haul that resulted in revenue rate deterioration. This was particularly evident in the retail segment where Express has a significant portion of its business. We are taking steps to make certain that freight is correctly priced and to review all new business to ensure it is properly contributing to the company’s profitability,” Staley continued.

“New Penn, our next-day, ground carrier in the Northeast, also operated in a difficult environment. New Penn has felt the impact of the sluggish economy in one of the most competitive transportation markets in the country. Since we acquired New Penn in November of 2001, their primary service area has continued to be significantly impacted by the events of 9/11. Although not completely satisfied with New Penn’s current results, it continues to be a top performer in its segment. As freight volumes improve, we believe New Penn is capable of attaining improved operating ratios,” Staley added.

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Roadway Corporation	Page 2
Second Quarter 2003

“Looking forward, we anticipate revenue growth in the third quarter of 2003 will be between 11.5% and 12.5% and earnings per share from continuing operations are expected to be in the range of $0.60 to $0.70 compared to $0.33 for the same period a year ago. For full-year 2003, we anticipate revenue growth to be between 8.5% and 9.5% and earnings-per-share from continuing operations are expected to be in the range of $2.36 to $2.60 compared to $1.85 in 2002. Fourth quarter 2003, 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 second half of 2002,” Staley concluded.

As a result of the sale of Arnold Transportation Services (ATS) on January 23, 2003, ATS has been accounted for as a discontinued operation for all periods presented. Assets and liabilities of ATS are included in the current section of the Condensed Consolidated Balance Sheet at December 31, 2002.

Condensed Statements of Consolidated Income
Roadway Corporation and Subsidiaries

		Twelve Weeks Ended
		(Second Quarter)
		June 21, 2003			June 15, 2002
		(in thousands, except per share data)
Revenue		$	741,528		$	656,003
Operating expenses:
	Salaries, wages and benefits		468,223			427,273
	Operating supplies and expenses		130,022			107,104
	Purchased transportation		75,725			57,775
	Operating taxes and licenses		18,688			17,481
	Insurance and claims		14,529			13,129
	Provision for depreciation		16,870			18,152
	Net loss on sale of operating property		30			283
Total operating expenses			724,087			641,197
Operating income from continuing operations			17,441			14,806
Other (expense), net			(6,044	)		(6,823	)
Income from continuing operations before income taxes			11,397			7,983
Provision for income taxes			4,787			3,347
Income from continuing operations			6,610			4,636
(Loss) Income from discontinued operations			(302	)		1,038
Net income		$	6,308		$	5,674
Earnings (loss) per share – basic:
	Continuing operations	$	0.35		$	0.25
	Discontinued operations		(0.02	)		0.05
Total earnings per share – basic		$	0.33		$	0.30
Earnings (loss) per share – diluted:
	Continuing operations	$	0.35		$	0.25
	Discontinued operations		(0.02	)		0.05
Total earnings per share – diluted		$	0.33		$	0.30
Average shares outstanding – basic			18,955			18,474
Average shares outstanding – diluted			19,336			18,888
Operating ratio			97.6%			97.7%
Profit margin from continuing operations			0.9%			0.7%

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Roadway Corporation	Page 3
Second Quarter 2003

Condensed Statements of Consolidated Income
Roadway Corporation and Subsidiaries

		Twenty-four Weeks Ended
		(Two Quarters)
		June 21, 2003			June 15, 2002
		(in thousands, except per share data)
Revenue		$	1,495,598		$	1,254,970
Operating expenses:
	Salaries, wages and benefits		943,658			826,437
	Operating supplies and expenses		260,434			206,313
	Purchased transportation		150,509			109,284
	Operating taxes and licenses		38,554			33,045
	Insurance and claims		29,641			24,560
	Provision for depreciation		34,169			36,240
	Net loss on sale of operating property		841			578
Total operating expenses			1,457,806			1,236,457
Operating income from continuing operations			37,792			18,513
Other (expense), net			(12,838	)		(13,647	)
Income from continuing operations before income taxes			24,954			4,866
Provision for income taxes			10,481			2,103
Income from continuing operations			14,473			2,763
(Loss) Income from discontinued operations			(155	)		1,162
Net income		$	14,318		$	3,925
Earnings (loss) per share – basic:
	Continuing operations	$	0.77		$	0.15
	Discontinued operations		(0.01	)		0.06
Total earnings per share – basic		$	0.76		$	0.21
Earnings (loss) per share – diluted:
	Continuing operations	$	0.76		$	0.15
	Discontinued operations		(0.01	)		0.06
Total earnings per share – diluted		$	0.75		$	0.21
Average shares outstanding – basic			18,802			18,514
Average shares outstanding – diluted			19,177			18,968
Operating ratio			97.5%			98.5%
Profit margin from continuing operations			1.0%			0.2%

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Roadway Corporation	Page 4
Second Quarter 2003

Condensed Consolidated Balance Sheets
Roadway Corporation and Subsidiaries

		June 21, 2003		December 31, 2002
		(in thousands)
Assets
Current assets:
	Cash and cash equivalents	$	125,692	$	106,929
	Other current assets		264,596		356,143
Total current assets			390,288		463,072
Net carrier operating property			496,017		509,183
Goodwill, net			286,181		283,910
Deferred income taxes			44,598		39,941
Other assets			46,495		39,767
Total assets		$	1,263,579	$	1,335,873
Liabilities and shareholders’ equity
Current liabilities:
	Accounts payable	$	164,806	$	193,501
	Other current liabilities		187,051		267,389
Total current liabilities			351,857		460,890
Long-term liabilities			223,305		213,601
Long-term debt			270,279		273,513
Shareholders’ equity			418,138		387,869
Total liabilities and equity		$	1,263,579	$	1,335,873

Condensed Statements of Consolidated Cash Flows
Roadway Corporation and Subsidiaries

		Twenty-four Weeks Ended
		(Two Quarters)
		June 21, 2003			June 15, 2002
		(in thousands)
Cash flows from operating activities:
	Income from continuing operations	$	14,473		$	2,763
	Adjustments		3,921			(8,581	)
Net cash provided (used) by continuing operating activities			18,394			(5,818	)
Net cash provided (used) by investing activities			26,703			(22,444	)
Net cash (used) by financing activities			(26,644	)		(3,323	)
Effect of exchange rate changes on cash			348			(90	)
	Net increase (decrease) in cash and cash equivalents from continuing operations		18,801			(31,675	)
	Net (decrease) in cash and cash equivalents from discontinued operations		(38	)		(5,163	)
Cash and cash equivalents at beginning of period			106,929			110,432
Cash and cash equivalents at end of period		$	125,692		$	73,594

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Roadway Corporation	Page 5
Second Quarter 2003

# of working days – 59		Reportable Segments and Related Operating Data Twelve Weeks Ended June 21, 2003 (Second Quarter 2003)
(Dollars in thousands,
except per ton data)		Roadway Express		New Penn		Segment Total
Revenue		$	691,156	$	50,372	$	741,528
	Salaries, wages & benefits		433,101		32,657		465,758
	Operating supplies		125,734		7,244		132,978
	Purchased transportation		75,276		449		75,725
	Other operating expense		45,232		4,394		49,626
Operating expense			679,343		44,744		724,087
Operating income		$	11,813	$	5,628	$	17,441
Operating ratio			98.3%		88.8%		97.6%
LTL tons			1,467,657		190,472
Truckload tons			312,853		28,783
Total tons			1,780,510		219,255
LTL shipments			3,095,453		431,608
Truckload shipments			38,315		3,486
Total shipments			3,133,768		435,094
Revenue per LTL ton		$	436.33	$	248.25
Revenue per truckload ton		$	162.27	$	107.26
Revenue per ton		$	388.18	$	229.74
Expense per ton		$	381.54	$	204.07

		Twelve Weeks Ended June 15, 2002
# of working days – 59		(Second Quarter 2002)
(Dollars in thousands,
except per ton data)		Roadway Express		New Penn		Segment Total
Revenue		$	606,409	$	49,594	$	656,003
	Salaries, wages & benefits		392,635		32,722		425,357
	Operating supplies		103,488		5,937		109,425
	Purchased transportation		57,317		458		57,775
	Other operating expense		43,726		4,925		48,651
Operating expense			597,166		44,042		641,208
Operating income		$	9,243	$	5,552	$	14,795
Operating ratio			98.5%		88.8%		97.7%
LTL tons			1,312,943		193,891
Truckload tons			288,494		27,935
Total tons			1,601,437		221,826
LTL shipments			2,770,619		428,547
Truckload shipments			34,799		3,459
Total shipments			2,805,418		432,006
Revenue per LTL ton		$	428.11	$	240.54
Revenue per truckload ton		$	153.63	$	105.81
Revenue per ton		$	378.67	$	223.57
Expense per ton		$	372.89	$	198.55

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Roadway Corporation	Page 6
Second Quarter 2003

# of working days – 121		Reportable Segments and Related Operating Data Twenty-four Weeks Ended June 21, 2003 (Two Quarters 2003)
(Dollars in thousands,
except per ton data)		Roadway Express		New Penn		Segment Total
Revenue		$	1,396,400	$	99,198	$	1,495,598
	Salaries, wages & benefits		872,539		66,100		938,639
	Operating supplies		251,560		14,911		266,471
	Purchased transportation		149,518		991		150,509
	Other operating expense		93,232		8,955		102,187
Operating expense			1,366,849		90,957		1,457,806
Operating income		$	29,551	$	8,241	$	37,792
Operating ratio			97.9%		91.7%		97.5%
LTL tons			2,925,884		376,150
Truckload tons			603,379		57,671
Total tons			3,529,263		433,821
LTL shipments			6,195,819		853,344
Truckload shipments			74,619		7,038
Total shipments			6,270,438		860,382
Revenue per LTL ton		$	443.12	$	247.23
Revenue per truckload ton		$	165.55	$	107.58
Revenue per ton		$	395.66	$	228.66
Expense per ton		$	387.29	$	209.66

		Twenty-four Weeks Ended June 15, 2002
# of working days – 117				(Two Quarters 2002)
(Dollars in thousands,
except per ton data)		Roadway Express		New Penn		Segment Total
Revenue		$	1,159,967	$	95,003	$	1,254,970
	Salaries, wages & benefits		758,970		63,431		822,401
	Operating supplies		198,987		12,051		211,038
	Purchased transportation		108,443		841		109,284
	Other operating expense		83,917		9,817		93,734
Operating expense			1,150,317		86,140		1,236,457
Operating income		$	9,650	$	8,863	$	18,513
Operating ratio			99.2%		90.7%		98.5%
LTL tons			2,518,808		371,155
Truckload tons			550,005		51,848
Total tons			3,068,813		423,003
LTL shipments			5,341,308		823,701
Truckload shipments			66,901		6,483
Total shipments			5,408,209		830,184
Revenue per LTL ton		$	427.06	$	241.13
Revenue per truckload ton		$	153.25	$	106.24
Revenue per ton		$	377.99	$	224.59
Expense per ton		$	374.84	$	203.64

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Roadway Corporation	Page 7
Second Quarter 2003

Roadway Corporation operates with 12 weeks in each of the first three quarters and 16 weeks in the fourth quarter.

A conference call discussing this quarter’s performance with securities analysts will be simulcast live on the Company’s Web site at www.roadwaycorp.com beginning at 11:00 a.m. (Eastern time) on Tuesday, July 8, 2003. The call will remain available for the next three weeks.

Note: This release contains, and other statements that we may make may contain, forward- looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for expectations for revenue, earnings or other future financial or business performance, strategies, expectations and goals. All statements that are not historical statements of fact are “forward-looking statements” and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements include all comments relating to our beliefs and expectations as to future events and trends affecting our business, results of operations and financial condition. We intend for the words “believes,” “anticipates,” “expects,” “intends,” “plans,” “continues,” “projects,” and similar expressions to identify forward-looking statements. The risks and uncertainties include, among others, variable factors such as capacity and rate levels in the motor freight industry; fuel prices; the impact of competition; the state of the national economy; the success of our operating plans, including our ability to manage growth and control costs; labor relations matters; and, uncertainties concerning the impact terrorist activities may have on the economy and the motor freight industry. We have based these forward-looking statements on management’s analysis about future events only as of the date of this press release. We undertake no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this press release. These forward-looking statements are subject to risks, uncertainties and assumptions about us and our subsidiaries. In addition to the disclosure contained in this document, you should carefully review the risks and uncertainties contained in other documents Roadway Corporation files from time to time with the Securities and Exchange Commission. Those documents are accessible on the SEC’s website at www.sec.gov and through our website at www.roadwaycorp.com.

Included in the Dow Jones Transportation Average,Roadway Corporation(NASDAQ: ROAD), is a holding company dedicated to leveraging opportunities to expand the transportation-related service offerings available to customers through the Roadway portfolio of strategically linked transportation companies. Roadway Corporation’s principal subsidiaries includeRoadway ExpressandRoadway Next Day Corporation.Roadway Express is a leading ISO 9001 and C-TPAT/PIP and FAST certified transporter of industrial, commercial and retail goods in the two- to five-day regional and long-haul markets. Roadway Express provides seamless service throughout all 50 states, Canada, Mexico and Puerto Rico including export/import services for more than 100 countries worldwide. Roadway Express ownsReimer Express Linesin Canada and Mexican-basedRoadway Express, S.A. de C.V.Roadway Next Day Corporation is a holding company focused on business opportunities in the shorter-haul regional and next-day markets. Roadway Next Day Corporation ownsNew Penn Motor Express, a next-day, ground less-than-truckload carrier of general commodities serving twelve states in the Northeastern United States, Quebec, Canada and Puerto Rico, with links to the Midwest and Southeast United States and Ontario, Canada. For additional information, contact Roadway Corporation at www.roadwaycorp.com.

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