LTL conglomerate Yellow Corp. said net income of $2.7 million in the first quarter of 2002 evaporated as it recorded 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.
Yellow said its consolidated operating revenue for the quarter dropped 8.4% to $762 million, compared to $832 million in the same period last year. Consolidated operating income, before the accounting charge, totaled $9.1 million this quarter, compared to $18.4 million in the first quarter of 2001.
Overland Park, KS-based Yellow's subsidiaries had a rough time in the first quarter. LTL carrier Yellow Transportation said its revenue dropped 9.8% on a per-day basis to $565 million this quarter, down from $636 million in the same quarter last year. 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.
Meridian IQ, formally launched in March as Yellow's subsidiary for managing non-asset-based transportation services, had operating revenue of $15 million and lost $1.4 million for the quarter. SCS Transportation's operating revenue dropped 4.3% to $184 million in the quarter from $196 million in the first quarter last year, with operations declining 5% to $5.1 million. N.J.-based Jevic reported first-quarter revenue of $69 million, down 8% on a per-day basis from $77 million a year ago. Jevic's operating income totaled $1 million this quarter compared to $2.3 million in the same period last year.