EXHIBIT 99.1 ------------ [ROADWAY CORPORATION LOGO] CONTACT: John M. Hyre Investor and Public Relations 330-258-6080 FOR IMMEDIATE RELEASE ROADWAY CORPORATION'S THIRD QUARTER EARNINGS $0.43 PER SHARE ------------------------------------------------------------ AKRON, Ohio - September 24, 2001 - Michael W. Wickham, Chairman and CEO of Roadway Corporation (Nasdaq: ROAD), issued the following statement: Today we report our earnings for the third quarter of 2001. These numbers represent the collective effort of 28,000 good Roadway employees through September 8th. On September 11, our world changed. We send our condolences to all who were impacted by this cowardly act. The American economy and especially the American transportation system have taken a real body blow. It is too early to know what the final business impact of the Twin Towers and Washington, D.C. attacks will be. But, we can be sure of one thing, the freedom that we enjoy in this elegant free market system will allow all of us to adjust and reposition. The final result will be that our transportation system, and our economy, will recover and recover completely. At Roadway, we are all committed to that. Roadway Corporation today reports net income of $8,173,000, or $0.43 per share (diluted), for its third quarter which ended September 8, 2001. This represents a decrease of 24.6% compared to net income of $10,845,000, or $0.57 per share (diluted), in the third quarter of 2000. Revenues for the third quarter of 2001 were $631,657,000, down 9.6% when compared to revenues of $698,867,000 for the third quarter of 2000. For the 36 weeks constituting the Company's first three quarters, net income was $17,186,000, or $0.91 per share (diluted), 44.8% below net income of $31,107,000, or $1.64 per share (diluted), for the same period in 2000. For the first three quarters of 2001, revenues were $1,924,251,000 a decrease of 7.6% when compared to revenues of $2,083,545,000 for the first three quarters of last year. --more-- 6 ROADWAY CORPORATION PAGE 2 THIRD QUARTER 2001 In the third quarter, total tonnage was down 13.2% from third quarter 2000 levels. Less-than-truckload (LTL) tons were down 13.2% and truckload tonnage was down 13.1%. Revenue per ton for the quarter increased 4.1% and operating expenses per ton rose 4.6% over 2000. Commenting on the quarter, Wickham stated, "We are pleased to report that our operations showed continued improvement, as our third quarter results surpassed those of either of our first two quarters. While pricing remained firm during the quarter, softness in the general economy reduced our tonnage levels slightly more than we anticipated. On the other hand, we successfully managed our costs against our volumes without taking drastic actions that could harm our business over the long term. While we are not satisfied with our year-over-year results, we were able to meet our expectations and the quarter's operating ratio deteriorated by less than one-half of a percent." "Despite recent events and current business levels, our strategic direction remains unchanged. The acquisition of Arnold Industries by Roadway Corporation is moving ahead as planned. Roadway Express will continue its emphasis on maintaining the excellence of its core business, while developing its higher yielding regional, super-regional and specialty services. Additionally, while controlling our costs, we have protected our ability and capacity to meet our customers needs as market conditions change," Wickham added. "The long-term effects on Roadway's business from the New York and Washington terrorist attacks have yet to be determined, but we don't anticipate them to be materially significant in terms of either lost business, or increased volumes from air cargo shipping changes. Looking ahead, we expect business levels to remain well below last year. The LTL pricing environment is expected to remain stable, with late summer pricing adjustments in place. We anticipate our fourth quarter operating ratio will improve by approximately 1/2 to one point when compared to the quarter just ended. " Wickham concluded. --more-- 7 ROADWAY CORPORATION PAGE 3 THIRD QUARTER 2001 Condensed Statements of Consolidated Income (Unaudited) Roadway Corporation and Subsidiaries Twelve Weeks Ended (Third Quarter) September 8, 2001 September 9, 2000 -------------------------------------------------------- (in thousands, except per share data) Revenue $ 631,657 $ 698,867 Operating expenses: Salaries, wages and benefits 404,722 437,729 Operating supplies and expenses 107,199 123,380 Purchased transportation 63,866 74,383 Operating taxes and licenses 16,342 17,645 Insurance and claims 8,777 13,070 Provision for depreciation 16,678 13,315 Net (gain) loss on sale of operating property (88) 743 -------------------------------------------------------- Total operating expenses 617,496 680,265 -------------------------------------------------------- Operating income 14,161 18,602 Other income, net 314 290 -------------------------------------------------------- Income before income taxes 14,475 18,892 Provision for income taxes 6,302 8,047 -------------------------------------------------------- Net income $ 8,173 $ 10,845 ======================================================== Earnings per share - basic $ .44 $ .58 Earnings per share - diluted $ .43 $ .57 Average shares outstanding - basic 18,455 18,649 Average shares outstanding - diluted 18,987 19,011 --more-- 8 ROADWAY CORPORATION PAGE 4 THIRD QUARTER 2001 Condensed Statements of Consolidated Income (Unaudited) Roadway Corporation and Subsidiaries Thirty-six Weeks Ended (Three Quarters) -------------------------------------------------------- September 8, 2001 September 9, 2000 -------------------------------------------------------- (in thousands, except per share data) Revenue $ 1,924,251 $ 2,083,545 Operating expenses: Salaries, wages and benefits 1,229,033 1,306,220 Operating supplies and expenses 336,833 376,811 Purchased transportation 191,954 213,731 Operating taxes and licenses 49,829 54,861 Insurance and claims 34,044 40,994 Provision for depreciation 47,617 36,973 Net loss on sale of operating property 534 1,257 -------------------------------------------------------- Total operating expenses 1,889,844 2,030,847 -------------------------------------------------------- Operating income 34,407 52,698 Other (expense) income, net (4,257) 1,495 -------------------------------------------------------- Income before income taxes 30,150 54,193 Provision for income taxes 12,964 23,086 -------------------------------------------------------- Net income $ 17,186 $ 31,107 ======================================================== Earnings per share - basic $ .93 $ 1.67 Earnings per share - diluted $ .91 $ 1.64 Average shares outstanding - basic 18,449 18,664 Average shares outstanding - diluted 18,938 19,005 --more-- 9 ROADWAY CORPORATION PAGE 5 Third Quarter 2001 Condensed Consolidated Balance Sheets (Unaudited) Roadway Corporation and Subsidiaries September 8, 2001 December 31, 2000 ----------------------------------------------------------- (in thousands) Assets Current assets: Cash and cash equivalents $ 82,554 $ 64,939 Other current assets 303,635 315,939 ----------------------------------------------------------- Total current assets 386,189 380,878 Net carrier operating property 424,394 428,685 Goodwill, net 15,206 16,086 Deferred income taxes 46,375 44,756 ----------------------------------------------------------- Total assets $ 872,164 $ 870,405 =========================================================== Liabilities and shareholders' equity Current liabilities: Accounts payable $ 180,012 $ 178,890 Other current liabilities 159,984 174,156 ----------------------------------------------------------- Total current liabilities 339,996 353,046 Long-term liabilities 182,302 177,488 Shareholders' equity 349,866 339,871 ----------------------------------------------------------- Total liabilities and equity $ 872,164 $ 870,405 =========================================================== Condensed Statements of Consolidated Cash Flows (Unaudited) Roadway Corporation and Subsidiaries Thirty-six Weeks Ended (Three Quarters) -------------------------------------------------------- September 8, 2001 September 9, 2000 -------------------------------------------------------- (in thousands) Cash flows from operating activities: Net income $ 17,186 $ 31,107 Adjustments 47,749 21,405 -------------------------------------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES 64,935 52,512 NET CASH USED BY INVESTING ACTIVITIES (43,860) (79,041) NET CASH USED BY FINANCING ACTIVITIES (3,615) (3,305) Effect of exchange rate changes on cash 155 0 -------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 17,615 (29,834) Cash and cash equivalents at beginning of period 64,939 80,797 -------------------------------------------------------- Cash and cash equivalents at end of period $ 82,554 $ 50,963 ======================================================== -- more -- 10 Roadway Corporation Page 6 THIRD QUARTER 2001 Operating Data (Unaudited) ROADWAY CORPORATION AND SUBSIDIARIES Twelve Weeks Ended (Third Quarter) September 8, 2001 September 9, 2000 -------------------------------------------------------- LTL tons 1,384,338 1,594,622 Truckload tons 304,191 350,209 -------------------------------------------------------- Total tons 1,688,529 1,944,831 LTL shipments 2,953,019 3,421,557 Truckload shipments 36,865 42,976 -------------------------------------------------------- Total Shipments 2,989,884 3,464,533 Revenue per LTL ton $ 421.94 $ 403.02 Revenue per truckload ton $ 156.30 $ 160.49 Revenue per ton $ 374.09 $ 359.35 Cost per ton $ 365.70 $ 349.78 Operating ratio 97.8% 97.3% Profit margin 1.3% 1.6% Thirty-six Weeks Ended (Three Quarters) September 8, 2001 September 9, 2000 -------------------------------------------------------- LTL tons 4,219,346 4,806,042 Truckload tons 957,109 1,096,352 -------------------------------------------------------- Total tons 5,176,455 5,902,394 LTL shipments 9,047,468 10,358,607 Truckload shipments 115,561 133,999 -------------------------------------------------------- Total Shipments 9,163,029 10,492,606 Revenue per LTL ton $ 420.81 $ 397.75 Revenue per truckload ton $ 155.39 $ 156.83 Revenue per ton $ 371.73 $ 353.00 Cost per ton $ 365.08 $ 344.07 Operating ratio 98.2% 97.5% Profit margin 0.9% 1.5% --more-- 11 Roadway Corporation Page 7 THIRD QUARTER 2001 Roadway Express 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 9:00 AM Eastern Time on Tuesday, September 25. The call will remain available for playback for the next three weeks. Note: While most of the information provided herein is historical, some of the comments made are forward-looking statements. Roadway Corporation's actual performance may differ from that forecast as a result of variable factors such as the state of the national economy, capacity and rate levels in the motor freight industry, fuel prices, the success of the Company's operating plans as well as the Company's consummation of its pending acquisition of Arnold Industries, Inc., and uncertainties concerning the impact recent terrorist activities may have on the economy. These forward-looking statements reflect management's analysis only as of the date of this release. Roadway Corporation undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. In addition to the disclosure contained herein, readers should carefully review risks and uncertainties contained in other documents Roadway Corporation files from time to time with the Securities and Exchange Commission. Included in the Dow Jones Transportation Average, Roadway Corporation (Nasdaq: ROAD), is a holding company dedicated to identifying opportunities to expand the transportation related service offerings available to customers through the Roadway portfolio of strategically linked transportation companies. Principal among Roadway Corporation's holdings is Roadway Express, a leading transporter of industrial, commercial and retail goods with a variety of innovative services designed to meet customer needs. An ISO 9002 certified carrier, Roadway Express provides seamless service between all 50 states, Canada, Mexico and Puerto Rico including export services to 66 countries. For additional information, contact the Company at www.roadwaycorp.com. - 30 - 12