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YELLOW CORPORATION RELEASES THIRD QUARTER RESULTS

 OVERLAND PARK, Kan., Oct. 21 /PRNewswire/ -- George E. Powell III, president and chief executive officer, reported to shareholders today that Yellow Corporation (NASDAQ-NMS: YELL) earned $10.5 million, or $.37 per share, in this year's third quarter compared to $11.6 million, or $.41 per share for the same quarter of 1992. Net income for the most recent quarter was reduced by $1.6 million, or $.06 per share, due to the impact of higher tax rates on the company's deferred tax liabilities. Income before taxes in this year's third quarter was $20.4 million versus $17.9 million in the same quarter last year.
 Operating revenue for the third quarter of 1993 totaled $761.7 million, an increase of 33 percent from the operating revenue of $571.3 million recorded in the same quarter last year. For the first nine months of 1993 operating revenue was $2,096.8 million compared to $1,703.5 million for the same period last year. Net income for the nine months was $6.8 million, or $.24 per share, versus $23.1 million, or $.82 per share. Year-to-date results this year reflect an $11.2 million, or $.40 per share, charge for network development while last year's results include an $11.5 million, or $.41 per share charge for a change in the method of accounting for revenue recognition. Preston Corporation, acquired by Yellow Corporation in the first quarter of 1993, is included effective March 1 of this year.
 Yellow Freight System, Yellow Corporation's primary motor carrier subsidiary, had an operating ratio of 95.7 for the third quarter of 1993, an improvement from last year's third quarter operating ratio of 96.2. Yellow Freight reported that total tonnage for the quarter was up 8.3 percent compared to last year, while LTL (less-than- truckload) tonnage was up 7.7 percent. For the nine months total tonnage was up 4.1 percent and LTL tonnage was up 3.5 percent on a per day basis.
 According to Powell, "The higher profitability of Yellow Freight in the third quarter is the result of increased levels of business, improvements in the pricing environment and continuing success in cost control. In spite of ongoing competitive pressure, revenue yields for Yellow Freight showed moderate gains in August and September aided by a 2 percentage point discount rollback implemented in August. Additional gains in revenue yields are necessary if they are to be restored to satisfactory levels."
 Preston Trucking recorded an 8.5 percent increase in revenue in the third quarter compared to the second. They also earned a modest operating profit in the quarter and continue to expect to be profitable on an operating basis for the entire second half of 1993. Saia Motor Freight Line reported an operating ratio of 90.2 while Smalley Transportation improved its performance, narrowing its loss from 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 Nov. 15 to shareholders of record on Nov. 1.
 STATEMENTS OF CONSOLIDATED INCOME
 Yellow Corporation and Subsidiaries
 For the Quarter and Nine Months Ended Sept. 30, 1993 and 1992
 (Amounts in thousands except per share data)
 (Unaudited)
 Third Quarter Nine Months
 1993 1992 1993 1992
 OPERATING REVENUE $761,706 $571,287 $2,096,827 $1,703,500
 OPERATING EXPENSES:
 Sal wage & emply ben 507,774 387,764 1,418,022 1,158,669
 Oper expense & suppl 100,035 74,290 279,667 214,855
 Oper tax & licenses 27,182 20,898 76,576 63,165
 Claims & insurance 19,730 13,338 50,641 38,923
 Communicatns & util 9,661 7,342 28,621 23,317
 Depreciation 33,324 28,722 98,677 88,986
 Purch trnsprt & rent 38,366 17,112 96,345 47,999
 Network development - - 18,000 -
 Total oper expense 736,072 549,466 2,066,549 1,635,914
 INCOME FROM OPERATNS 25,634 21,821 30,278 67,586
 NONOPERATING EXPENSES:
 Interest expense 4,593 3,012 13,035 9,204
 Other, net 613 864 1,691 3,955
 Nonoper expenses net 5,206 3,876 14,726 13,159
 INCOME BEFORE INC TAX 20,428 17,945 15,552 54,427
 PROV FOR INCOME TAX 9,960 6,387 8,719 19,850
 INCOME BEFORE CUMULATIVE EFFECT
 OF ACCTING CHANGE 10,468 11,558 6,833 34,577
 CUMULATIVE EFFECT OF CHANGE IN
 REVENUE RECOGNITION - - - (11,500)
 NET INCOME $ 10,468 $ 11,558 $ 6,833 $ 23,077
 AVER COM SHRS OUTSTND 28,106 28,095 28,106 28,091
 EARNINGS PER SHARE:
 Income before cumulative effect
 of accounting change $ .37 $ .41 $ .24 $ 1.23
 Net Income $ .37 $ .41 $ .24 $ .82
 -0- 10/21/93
 /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

BB -- DV008 -- 5278 10/21/93 13:29 EDT
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Date:Oct 21, 1993
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