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YELLOW EXPECTS BREAKEVEN FIRST QUARTER; SEPARATELY ANNOUNCES WAGE REDUCTION PROGRAM AT PRESTON TRUCKING CO.

 OVERLAND PARK, Kan., March 24 /PRNewswire/ -- Yellow Freight System, Inc. of Delaware (NASDAQ: YELL) announced today that it expects to report essentially break-even results for the first quarter ending March 31, 1993. The company attributes this to price competition within the trucking industry, the extremely harsh winter weather experienced during the quarter and disappointing tonnage. According to Yellow, price discounting had accelerated late in the fourth quarter of 1992. While discounting moderated in early 1993, revenue yields for the current quarter were still below expectations.
 The severe weather increases operating costs while reducing economic activity and shipping volumes. The impact of the weather during the current quarter, along with the company's commitment to price restraint, will likely result in tonnage being flat on a per day basis compared to the first quarter of 1992. The first quarter of 1993 has one less working day than the same quarter last year.
 First quarter earnings will be released April 22, 1993 and will include the March results of Preston Corporation which was acquired by Yellow in late February 1993.
 The new management team, along with the other employees of Preston Trucking Co., Preston Corporation's largest subsidiary, have moved quickly to implement a plan to reduce costs and restore profitability. Among the actions taken is a 9 percent wage reduction for all Preston Trucking Co. employees which is estimated to save $14 million over the next 12 months.
 The wage reduction required a vote of those employees who are members of the International Brotherhood of Teamsters and who approved it by a 78.4 percent majority. Yellow is pleased that the employees of Preston Trucking have demonstrated such a strong commitment to the success of their company. The savings realized will remain at Preston Trucking to be used for operating funds and to reduce debt.
 Yellow Freight System, Inc. of Delaware is a holding company whose subsidiaries provide transportation services throughout North America as well as service to Western Europe in conjunction with The Royal Frans Maas Group.
 -0- 3/24/93
 /CONTACT: Phillip Spangler of Yellow Freight System, Inc. of Delaware, 913-967-4300/
 (YELL)


CO: Yellow Freight System, Inc. of Delaware; Preston Corp.; Preston
 Trucking Co. ST: Kansas IN: TRN SU: ERP


MC -- DV002 -- 9360 03/24/93 17:21 EST
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Publication:PR Newswire
Date:Mar 24, 1993
Words:378
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