LTL conglomerate Yellow Corp. said its first-quarter 2001 profits dropped by half compared to the same period last year, before integration charges among its subsidiaries further lowered per share earnings for the current quarter.
“On an apples-to-apples comparison of actual operating results, we delivered a respectable performance in the first quarter, given the dramatic slowdown in the economy,” said Bill Zollars, Yellow Corp.’s chairman, president & CEO.
Yellow said its per share earnings were $0.22, before a $5.4-million charge for the integration of its WestEx, Action Express and Saia Motor Freight Line subsidiaries dropped those earnings down to $0.07 per share. By contrast, earnings per share in the first quarter of 2000 were $0.41
However, in the first quarter of 2000, the Kansas-based company noted a then-active fuel contract hedging program added $6.8 million in operating income, or $0.17 per share. When excluding the fuel hedge from first-quarter 2000 results, earnings per share were $0.24, versus $0.22 in the current quarter, before the $5.4-million charge was included, the carrier said.
Yellow’s operating revenue for the first quarter was $832 million, down slightly from $882 million in the 2000 first quarter. Consolidated operating income also declined, reaching $18.4 million, compared with $25.1 million in the 2000 first period. However, excluding the fuel hedge, operating income was $18.3 million for the first quarter of 2000, Yellow noted.
On a per-day basis, Yellow’s first quarter revenue was down 5.1% over the prior year period. LTL tonnage per day for the quarter was down 12.6%, while shipments per day were down 12.3%. Pricing yields, however, remained strong as LTL revenue per hundred-weight was up 8.6%from the 2000 first quarter.