Trucking conglomerate Yellow Corp. of Overland Park, KS predicts that it will not meet its previous earnings estimates for its third quarter 2001, primarily because of the continuing economic slowdown. Yellow now believes its third-quarter earnings per share will be between $0.20 and $0.25, versus previous estimates of $0.48.
The company said it had expected some seasonal volume improvements along with continued favorable year-over-year pricing. However, the economy and pricing have not shown the anticipated improvements. Year-over-year pricing comparisons for the third quarter will not be as positive as the trends from the first and second quarters, Yellow said.
However, Bill Zollars, Yellow’s president & CEO, remains upbeat. “Despite the unfavorable economy, we will still be solidly profitable for the quarter due to continued success in flexing down our variable expenses and pricing stability,” he said. “Our challenge now is to keep our focus where it belongs, continuing to provide best-in-class service, particularly as we enter a period of potential uncertainty due to the tragic events of September 11.”