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YELLOW CORPORATION ANNOUNCES SECOND QUARTER RESULTS

 OVERLAND PARK, Kan., July 22 /PRNewswire/ -- George E. Powell III, president and chief executive officer, reported to shareholders today that Yellow Corporation (NASDAQ-NMS: YELL) earned $9.3 million, or $.33 per share, in the second quarter of 1993 before the impact of a restructuring charge. This compares to $10.0 million, or $.35 per share, earned in last year's second quarter. For the first six months of 1993, earnings were $7.6 million, or $.27 per share, before the restructuring charge. Net income in the same period last year was $23.0 million, or $.82 per share, before the impact of an accounting change.
 Operating revenue for the quarter was $732.9 million versus $566.2 million for the same period of 1992. Operating revenue for the first half of 1993 was $1,335.1 million compared to $1,132.2 million in the same period last year. The results of Preston Corporation, acquired by Yellow in the first quarter of this year, have been included beginning March 1.
 During the second quarter Yellow Corporation's primary motor carrier subsidiary, Yellow Freight System, Inc., announced the undertaking of an extensive network planning process, including terminal consolidation and realignment, to improve customer service and reduce costs. These network improvements are part of an ongoing plan to enhance Yellow Freight System's competitiveness by reducing freight handling and increasing freight flow flexibility. Accordingly, the company recorded a restructuring charge of $18.0 million, $11.2 million after tax, or $.40 per share, in the quarter. This resulted in Yellow Corporation reporting a net loss of $1.9 million, or $.07 per share, for the quarter and a net loss of $3.6 million, or $.13 per share, for the six months.
 Overall tonnage for Yellow Freight System was up 4.3 percent with less-than-truckload (LTL) tonnage up 3.8 percent in the current quarter compared to the same period last year. This is the first time since the last quarter of 1991 that comparisons with the prior year have been positive. For the first half of 1993 overall tonnage is up 1.9 percent and LTL tonnage is up 1.4 percent per day.
 Yellow Freight System's operating ratio for this year's second quarter improved to 96.2, before the impact of the restructuring charge, versus 96.4 in the second quarter of last year. According to Powell, "A lower incidence of cargo claims, improved safety performance and continuous cost control efforts contributed to this accomplishment. In addition, on-time service reached new highs in the quarter. These encouraging results in the face of a weak economy and fierce competition reflect the dedicated efforts and hard work of all Yellow Freight System employees."
 Price discounting pressure on Yellow Freight System remained intense during the second quarter with revenue yields no higher than during the same quarter last year. Compared to the first quarter of 1993 revenue yields were down slightly. To help restore yields to satisfactory levels, Yellow Freight System announced plans to implement a 2 percent discount rollback to take effect Aug. 2, 1993. Yellow Freight System expects a discount rollback to promote greater industry stability by slowing the destructive cycle of price discounting.
 Also during the second quarter Yellow Freight System announced its decision to reaffiliate with Trucking Management Inc., a multi-employer bargaining group representing the trucking industry in labor contract negotiations, principally with the International Brotherhood of Teamsters. This decision was driven by the dramatic changes in the trucking industry in recent years which emphasize the need for significant change in industry labor agreements.
 Yellow Corporation is pleased to report that the Federal District Court's decision dismissing the six-year old antitrust case brought by Lifschultz Fast Freight against Yellow Freight System and two other motor carriers was affirmed by the U.S. Court of Appeals. The opinion of the Appellate Court stated that the District Court's finding that the litigation was preposterous and entirely without merit was "thorough and well-reasoned."
 "The employees of Preston Trucking Company, Preston Corporation's largest subsidiary, continue to make progress towards the goal of restoring their company to profitability," Powell said. "They anticipate earning an operating profit in the second half of 1993. Saia Motor Freight Line, Preston Corporation's other primary subsidiary, remains very profitable with an operating ratio of 88.8 in the second quarter."
 The Board of Directors of Yellow Corporation declared a quarterly dividend today of 23 1/2 cents per share to be paid Aug. 16 to shareholders of record on Aug. 2.
 STATEMENTS OF CONSOLIDATED INCOME
 Yellow Corporation and Subsidiaries
 For the Quarter and Six Months Ended June 30, 1993 and 1992
 (Amounts in thousands except per share data)
 (Unaudited)
 Second Quarter Six Months
 1993 1992 1993 1992
 OPERATING REVENUE $732,901 $566,177 $1,335,121 $1,132,213
 OPERATING EXPENSES:
 Sal wages & emply ben 493,063 388,295 910,248 770,905
 Oper expenses & suppl 97,073 71,621 179,632 140,565
 Oper taxes & licenses 26,775 21,067 49,394 42,267
 Claims & insurance 16,834 12,429 30,911 25,585
 Communications & util 10,047 7,700 18,960 15,975
 Depreciation 34,095 29,514 65,353 60,264
 Purch trnsprt & rents 34,127 15,058 57,979 30,887
 Network development 18,000 --- 18,000 ---
 Total oper expenses 730,014 545,684 1,330,477 1,086,448
 INCOME FROM OPERATNS 2,887 20,493 4,644 45,765
 NONOPERATING EXPENSES:
 Interest expense 4,796 3,075 8,442 6,192
 Other, net 552 1,349 1,078 3,091
 Nonoper expenses, net 5,348 4,424 9,520 9,283
 INCOME (LOSS) BEF INC TAX (2,461) 16,069 (4,876) 36,482
 PROV FOR INCOME TAXES (575) 6,113 (1,241) 13,463
 INCOME (LOSS) BEF CUMULATIVE
 EFFECT OF ACCNTG CHANGE (1,886) 9,956 (3,635) 23,019
 CUMULATIVE EFFECT OF CHANGE IN
 REVENUE RECOGNITION --- --- --- (11,500)
 NET INCOME (LOSS) $ (1,886)$ 9,956 $ (3,635)$ 11,519
 AVER COM SHRS OUTSTND 28,106 28,090 28,106 28,088
 EARNINGS PER SHARE:
 Income (loss) before cumulative
 effect of accntg chge $ (.07)$ .35 $ (.13)$ .82
 Net Income (Loss) $ (.07)$ .35 $ (.13)$ .41
 -0- 7/22/93
 /CONTACT: Linda G. George (media), 913-967-4383; or Phillip A. Spangler (analyst), 913-967-4300, both of Yellow Corporation/
 (YELL)


CO: Yellow Corporation ST: Kansas IN: TRN SU: ERN

MC -- DV002 -- 4569 07/22/93 12:55 EDT
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Date:Jul 22, 1993
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