LTL conglomerate Yellow Corp. predicts that its earnings in the second quarter will be in the range of 22 to 25 cents per share, far higher than the carrier's previous estimate of 15 to 20 cents per share back in April.
Analysts have said Yellow should earn near 20 cents per share for the second quarter. For the full year, Yellow said it "remains comfortable" with its earnings forecast of $1.50 to $1.75 per share.
"We will have positive year-over-year tonnage comparisons for the second quarter, which is encouraging," said Yellow CEO Bill Zollars. "The increased business volumes are the result of modest but steady economic improvement, market share gains and continuing growth in our guaranteed services. The combination of these factors has added to our profitability for the quarter."
Overland Park, KS-based Yellow could use some good financial news. Its first quarter net income of $2.7 million evaporated in the face of a $75.2 million charge associated with new accounting rules. The charge reflects goodwill deductions Yellow recorded after it purchased rival LTL carrier Jevic Transportation last year.
Yellow added that its first quarter total tonnage was down 7.4% and LTL tonnage dropped 7.2% on a per day basis from levels reached in the first quarter of 2001.