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ROADWAY SERVICES REPORTS SECOND QUARTER RESULTS

 AKRON, Ohio, July 6 /PRNewswire/ -- Roadway Services, Inc. (NASDAQ: ROAD) reports revenue for the second quarter ended June 19 of $939,263,000 compared with revenue of $803,501,000 in the second quarter last year, which ended June 20, 1992.
 Net income for the quarter was $27,323,000 or $.69 per share compared with $32,363,000 or $.82 per share in the second quarter of 1992.
 For the 24 weeks constituting the company's first half, revenue was $1,795,315,000 compared with revenue of $1,606,167,000 for the first half last year. Income for the first half this year, before the cumulative effect of accounting changes, was $47,584,000 or $1.20 per share compared with $63,086,000 or $1.60 per share for the first half of 1992. Net income for the first half was $29,453,000 or $.74 per share compared with $63,086,000 or $1.60 per share in the first half 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, resulting in a net reduction in after-tax earnings of $.46 per share in the first quarter of 1993.
 Results for the second quarter and first half of 1993 include the revenue and earnings of Coles Express, purchased by the company in June 1992, and Central Freight Lines Inc. of Waco, Texas, since its purchase in early April.
 Tonnage for Roadway Express, the company's largest operating subsidiary, was up 7.2 percent for the quarter, with less-than-truckload (LTL) tons up 7.3 percent and truckload tonnage up 7.0 percent.
 Revenue for Roadway Express was up 7.4 percent while increased expenses, including wage and benefit increases of approximately 3.4 percent under the industry labor contract effective April 1, resulted in a deterioration in the second quarter operating margin from 4.5 percent last year to 3.0 percent this year. Quarterly earnings for Roadway Express were $.25 per share this year compared with $.35 per share a year ago.
 "This report reflects that the principal earnings decrease compared to last year occurred at Roadway Express, as was the case in the first quarter," said Joseph M. Clapp, chairman and president. "We are pleased that the productivity declines experienced then, at least partially related to the implementation of faster transit schedules on many traffic lanes, are being reversed. Load factor improved, but overall productivity growth remains a principal focus, as well as the need to realize meaningful revenue yield improvement, which must be addressed with equal intensity."
 RPS earnings, while slightly exceeding plan, were down modestly from second quarter 1992 results, reflecting operating losses at the company's Canadian subsidiary.
 Revenue and earnings (unaudited) for the company's second quarter, with comparable figures for 1992, are as follows:
 Twelve Weeks Ended
 (Second Quarter)
 June 19, 1993 June 20, 1992
 Revenue $ 939,263,000 $ 803,501,000
 Operating Income $ 42,002,000 $ 50,447,000
 Other Income - Net 4,633,000 3,921,000
 Income Before Income Taxes $ 46,635,000 $ 54,368,000
 Provision for Income Taxes 19,312,000 22,005,000
 Net Income $ 27,323,000 $ 32,363,000
 Net Income Per Share $ 0.69 $ 0.82
 Average Shares Outstanding 39,697,000 39,397,000
 Twenty-Four Weeks Ended
 (First Half)
 June 19, 1993 June 20, 1992
 Revenue $1,795,315,000 $1,606,167,000
 Operating Income $ 72,992,000 $ 99,211,000
 Other Income - Net 8,211,000 6,674,000
 Income Before Income Taxes and
 Cumulative Effect of
 Accounting Changes $ 81,203,000 $ 105,885,000
 Provision for Income Taxes 33,619,000 42,799,000
 Income Before Cumulative Effect
 of Accounting Changes $ 47,584,000 $ 63,086,000
 Cumulative Effect of Accounting
 Changes (18,131,000) --
 Net Income $ 29,453,000 $ 63,086,000
 Earnings Per Share:
 Before Cumulative Effect of
 Accounting Changes $ 1.20 $ 1.60
 Cumulative Effect of Accounting
 Changes (0.46) --
 Net Income $ 0.74 $ 1.60
 Average Shares Outstanding 39,719,000 39,329,000
 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- 7/6/93
 /CONTACT: D. A. Wilson, Roadway Services, Inc., 216-384-2378/
 (ROAD)


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

AR -- CL018 -- 8784 07/06/93 17:00 EDT
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Date:Jul 6, 1993
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