Yellow Roadway Exceeds 1Q Projections
Yellow Roadway Corp. posted 1Q earnings of $18.2 million, trumping Yellow’s 1Q 2003 earnings of $5.6 million three-fold before it merged with Roadway Express. The company cites across-the-board strong performance and an improving economy.
Operating income for the quarter is up 20.3% to $41.3 million, from pro forma operating income— which calculates what the combined Yellow and Roadway companies would have earned 1Q 2003.
Operating revenue increased 7.7% to $1.55 billion over pro forma 1Q 2003.
Overall, LTL tonnage per day increased 2.2%. LTL tonnage per day for Yellow Transportation increased 6.6%, while Roadway Express’s declined 3.0%.
“In our first full quarter as Yellow Roadway Corp., every business unit exceeded their financial targets. While we still have much to accomplish, it was a gratifying first quarter performance,” said Yellow Roadway president and CEO Bill Zolars.
Earnings per share (EPS) increased 40.7% to 38 cents from pro forma EPS of 27 cents and double the reported EPS of 19 cents. The company says it expects 2Q earnings per share to be between 70 cents to 75 cents.
The strong performance indicators from the merger of Yellow and Roadway Express reflects the fledging company reaping the benefits of decreased competition, said analyst Robert Persuit of S.J. Consulting.
“Yields are up because of the reduced capacity in the market,” Persuit told Fleet Owner.
