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ROADWAY SERVICES, INC. REPORTS FIRST QUARTER RESULTS

 AKRON, Ohio, April 13 /PRNewswire/ -- Roadway Services, Inc. (NASDAQ: ROAD) reports revenue for the first quarter ended March 27, 1993 of $856,052,000 compared with revenue of $802,666,000 in the first quarter last year, which ended March 28, 1992.
 Income for the first quarter, before the cumulative effect of accounting changes, was $20,261,000 or $.51 per share compared with $30,723,000 or $.78 per share in 1992. Net income for the quarter was $2,130,000 or $.05 per share compared with $30,723,000 or $.78 per share in the first quarter of 1992.
 The company adopted new accounting rules in the first quarter of 1993 regarding the recognition of the costs of providing health care benefits to certain retirees under age 65 and accounting for deferred income taxes. The net effect of these changes reduced after-tax earnings by $.46 per share in the first quarter.
 Results for the first quarter of 1993 include the revenue and earnings of Coles Express, a New England regional carrier purchased by the company in June 1992. The company also completed the acquisition in early April of another regional carrier - Central Freight Lines Inc. of Waco, Texas - whose operations are not included in these results.
 Operating results for the quarter were significantly affected by several factors, including two fewer business days in the first quarter this year than in the first quarter a year ago; and severe winter weather conditions.
 In addition, Roadway Express incurred higher costs in the first quarter this year associated with initial implementation of improved transit times on 40 percent of the company's service lanes. As a result, the operating margin for Roadway Express deteriorated from 4.6 percent in the first quarter last year to 2.2 percent this year.
 Tonnage per shipping day for Roadway Express, the company's largest operating subsidiary, was up 5.1 percent for the quarter, with less-than-truckload (LTL) tons up 5.4 percent and truckload tonnage up 4.0 percent compared with the first quarter last year. LTL revenue per ton increased 2.0 percent versus the fourth quarter of 1992, reflecting in part the implementation of a general rate increase on January 1. LTL revenue per ton was 0.1 percent higher than a year ago. These comparisons reflect not only the impact of discounting over the past year, but also of an increase in shipment size which reduces revenue per ton.
 Additional costs for systems development were incurred during the quarter by Roadway Logistics Systems, Inc. (ROLS), the company's contract logistics provider, as previously reported.
 Roadway Package System (RPS) experienced good volume growth for the quarter. Earnings were down from last year's very strong first quarter, reflecting severe weather, fewer shipping days, results of the Canadian subsidiary opened last August, and the loss of a bid at a major customer, partially offset by improved yields. Earnings were near plan.
 "Clearly these results are a disappointment to us and to our shareholders," said Joseph M. Clapp, chairman and president. "Despite acceptable volume growth and notwithstanding the challenges of weather and the need to adjust to new operating patterns, we failed to control our costs as well as we must."
 "We must, and we will, resume our improvements in productivity, quality and revenue yield to again produce results of which we are capable. At the same time we will continue to invest in technology and systems development to maintain our position of leadership for the future," he concluded.
 Revenue and earnings (unaudited) for the company's first quarter, with comparable figures for 1992, are as follows:
 Twelve Weeks Ended
 (First Quarter)
 March 27, 1993 March 28, 1992
 Revenue $856,052,000 $802,666,000
 Operating Income $ 30,990,000 $ 48,764,000
 Other Income - Net 3,578,000 2,753,000
 Income Before Income Taxes and
 Cumulative Effect of
 Accounting Changes $ 34,568,000 $ 51,517,000
 Provision for Income Taxes 14,307,000 20,794,000
 Income Before Cumulative Effect
 of Accounting Changes $ 20,261,000 $ 30,723,000
 Cumulative Effect of Accounting
 Changes (18,131,000) --
 Net Income $ 2,130,000 $ 30,723,000
 Earnings Per Share:
 Before Cumulative Effect of
 Accounting Changes $ 0.51 $ 0.78
 Cumulative Effect of Accounting
 Changes (0.46) --
 Net Income $ 0.05 $ 0.78
 Average Shares Outstanding 39,741,000 39,263,000
 The company operates on a 13 four-week period calendar with 12 weeks in each of the first three quarters and 16 weeks in the fourth quarter.
 Roadway Services owns Roadway Express, Inc., one of the nation's largest motor freight carriers; Roadway Package System, Inc., serving shippers in the small package market; Viking Freight, Inc., Spartan Express, Inc., Coles Express, Inc., and Central Freight Lines Inc., regional carriers serving the country's major geographic regions; Roberts Express, Inc., a critical shipment carrier; and Roadway Logistics Systems, Inc., which provides contract logistics services.
 -0- 4/13/93
 /CONTACT: D. A. Wilson, Roadway Services, Inc., 216-384-2378/
 (ROAD)


CO: Roadway Services, Inc. ST: Ohio IN: TRN SU: ERN

LC -- CL015 -- 5413 04/13/93 17:12 EDT
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Date:Apr 13, 1993
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