Yellow forecasts bigger profits in 2Q

June 20, 2002
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
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.

About the Author

Sean Kilcarr | Editor in Chief

Sean previously reported and commented on trends affecting the many different strata of the trucking industry. Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...