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ROADWAY SERVICES REPORTS THIRD QUARTER EARNINGS

 AKRON, Ohio, Sept. 28 /PRNewswire/ -- Roadway Services, Inc. (NASDAQ: ROAD) reported revenue for the third quarter ended Sept. 11 of $983,872,000 compared with revenue of $836,701,000 in the third quarter last year, which ended Sept. 12.
 Net income for the quarter was $29,039,000 or $.74 per share compared with $32,836,000 or $.83 per share in the third quarter of 1992.
 Income before taxes for the third quarter was approximately the same as the prior year; however, a higher provision for income taxes was recorded this year due to the year-to-date impact of the increase in federal income taxes retroactive to Jan. 1, 1993, including the impact of the higher tax rate on deferred tax liabilities, and higher state income taxes.
 For the 36 weeks ended Sept. 11, revenue was $2,779,187,000 compared with revenue of $2,442,868,000 for the first three quarters of last year. Income for the first three quarters this year, before the cumulative effect of accounting changes, was $76,623,000 or $1.94 per share compared with $95,922,000 or $2.43 per share for the first three quarters of 1992. Net income for the 36 weeks ended Sept. 11 was $58,492,000 or $1.48 per share compared with $95,922,000 or $2.43 per share for the first three quarters 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 1993 include the revenue and earnings of Coles Express, purchased by the company in June 1992, and Central Freight Lines of Waco, Texas, since its purchase in early April.
 Tonnage for Roadway Express, the company's largest operating subsidiary, was up 6.0 percent for the quarter, with less-than-truckload (LTL) tons up 6.9 percent and truckload tonnage up 2.9 percent.
 Revenue for Roadway Express was up 7.0 percent while increased expenses, primarily wage and benefit increases, resulted in a deterioration in the third quarter operating margin from 4.3 percent last year to 3.5 percent this year. Freight rate yields were improving at the end of the period. Quarterly earnings for Roadway Express were $.28 per share this year compared with $.34 per share a year ago.
 Roadway Package System continued to experience strong revenue growth in the third quarter, and earnings increased from the comparable period a year ago.
 Roadway Global Air (RGA), a heavy air freight company, began operations on Sept. 13. Startup losses will be incurred in the fourth quarter.
 Revenue and earnings (unaudited) for the 12 weeks constituting the company's third quarter and 36 weeks ended Sept. 11, 1993, with comparable figures for 1992, are as follows:
 Twelve Weeks Ended
 (Third Quarter)
 Sept. 11, 1993 Sept. 12, 1992
 Revenue $ 983,872,000 $ 836,701,000
 Operating Income $ 53,752,000 $ 51,880,000
 Other Income - Net 1,123,000 3,383,000
 Income Before Income Taxes $ 54,875,000 $ 55,263,000
 Provision for Income Taxes 25,836,000 22,427,000
 Net Income $ 29,039,000 $ 32,836,000
 Net Income Per Share $ 0.74 $ 0.83
 Average Shares Outstanding 39,322,000 39,683,000
 Thirty-Six Weeks Ended
 (Three Quarters)
 Sept. 11, 1993 Sept. 12, 1992
 Revenue $2,779,187,000 $2,442,868,000
 Operating Income $ 126,744,000 $ 151,091,000
 Other Income - Net 9,334,000 10,057,000
 Income Before Income Taxes and
 Cumulative Effect of
 Accounting Changes $ 136,078,000 $ 161,148,000
 Provision for Income Taxes 59,455,000 65,226,000
 Income Before Cumulative Effect
 of Accounting Changes $ 76,623,000 $ 95,922,000
 Cumulative Effect of Accounting
 Changes (18,131,000) ---
 Net Income $ 58,492,000 $ 95,922,000
 Earnings Per Share:
 Before Cumulative Effect of
 Accounting Changes $ 1.94 $ 2.43
 Cumulative Effect of Accounting
 Changes (0.46) ---
 Net Income $ 1.48 $ 2.43
 Average Shares Outstanding 39,588,000 39,445,000
 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; Roadway Global Air, Inc., serving shippers in the heavy air freight 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- 9/28/93
 /CONTACT: D. A. Wilson of Roadway Services, Inc., 216-384-2378/
 (ROAD)


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

AR -- CL016 -- 6540 09/28/93 16:54 EDT
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Date:Sep 28, 1993
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