Spin-offs hurt Yellow

Yellow president & CEO Bill Zollars said increased tonnage and revenue from its LTL operations helped boost its profits, but the carrier ended up posting a net loss of $93.9 million for the year because it spun off Jevic Transportation and SCS Transportation into a separate company.

For the fourth quarter, Overland Park, KS-based Yellow posted operating income of $24.5 million on operating revenue of $717 million, up from income of $6.3 million on operating revenue of $600 million in the same period of 2001.

For the year, Yellow said operating revenues increased to $46.9 million on operating revenues of $2.62 billion, compared to $38.2 million in operating income on revenues of $2.51 billion.

Zollars added that LTL revenue per day was up 18.3% in the fourth quarter of 2002, primarily reflecting a 13% increase in LTL tonnage per day and a 4.6% improvement in LTL revenue per hundred weight, excluding the benefits of a 3.4% fuel surcharge.