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YELLOW FREIGHT RELEASES SECOND QUARTER FINANCIAL RESULTS

 YELLOW FREIGHT RELEASES SECOND QUARTER FINANCIAL RESULTS
 OVERLAND PARK, Kan., July 22 /PRNewswire/ -- George E. Powell III, president and chief executive officer of Yellow Freight System, Inc. of Delaware (NASDAQ: YELL), reported to shareholders today that operating revenue in the second quarter was $566,177,000, down 5.7 percent, compared to $600,200,000 in the second quarter of 1991. Net income for the quarter totalled $9,956,000, or $.35 per share, versus the $11,255,000, or $.40 per share, earned in last year's second quarter. In spite of the decline in revenue the operating ratio for the quarter was 96.4, the same as last year.
 Operating revenue in the first half of 1992 was $1,132,213,000 and net income was $23,019,000, or $.82 per share, compared to operating revenue of $1,160,957,000 and net income of $16,836,000, or $.60 per share, in the first half of 1991. Current year results are before the impact of a nonoperating charge of $11,500,000, or $.41 per share, recorded in the first quarter. This charge, which had no impact on cash flow, is the cumulative effect of a change in the company's motor carrier subsidiaries' method of revenue recognition. The change was required by a decision of the Emerging Issues Task Force of the Financial Accounting Standards Board and applies to the entire transportation industry.
 Total tonnage for the motor carrier subsidiaries declined 6.3 percent and less-than-truckload (LTL) tonnage was down 6.7 percent in the second quarter compared to the same quarter last year. For the first half, total tonnage on a per day basis was down 4.3 percent and LTL tonnage was down 4.8 percent compared to the prior year. Tonnage per day was essentially unchanged, however, between the first and second quarters of 1992.
 According to Powell, "The decline in tonnage and revenue in 1992 is the result of the commitment of Yellow Freight, the company's primary motor carrier subsidiary, to price restraint and revenue yield retention, as well as the continued soft economy." Overall, motor carrier LTL revenue yields in the second quarter were up 3 percent from last year's fourth quarter, reflecting success in retaining most of the benefits of the January 1, 1992 rate increase.
 During August, Yellow Freight will implement a change of operations to lower operating costs by reducing linehaul miles. The annual savings from this change is expected to significantly exceed the $1.5 million charge to operations which will be recorded in the third quarter.
 Powell also told shareholders that, "Yellow Freight employees continue to provide excellent customer service and remain dedicated to quality in all aspects of the organization. Labor efficiency improved in the second quarter compared to last year and the average load per trip has increased. The upward trend in workers' compensation leveled off in the quarter and ongoing efforts at cost control continue to meet with success. In addition, capital expenditure plans are reviewed frequently to ensure they are consistent with the emphasis on increasing returns on investment. Yellow Freight remains focused on pricing discipline, cost control and improving profitability."
 The Board of Directors of the company declared a quarterly dividend today of 23 1/2 cents per share to be paid August 17 to shareholders of record as of August 3.
 STATEMENTS OF CONSOLIDATED INCOME
 Yellow Freight System, Inc. of Delaware and Subsidiaries
 For the Quarter and Six Months Ended June 30, 1992 and 1991
 (Amounts in thousands except per share data)
 (Unaudited)
 Second Quarter Six Months
 1992 1991 1992 1991
 OPERATING REVENUE $566,177 $600,200 $1,132,213 $1,160,957
 OPERATING EXPENSES:
 Sal wages & emply ben 388,295 407,198 770,905 784,018
 Oper expenses & suppl 71,621 79,382 140,565 160,409
 Oper taxes & licenses 21,067 20,908 42,267 41,914
 Claims & insurance 12,429 13,467 25,585 26,117
 Communications & util 7,700 7,816 15,975 16,081
 Depreciation 29,514 32,203 60,264 63,620
 Purch trnsprt & rents 15,058 17,624 30,887 35,441
 Total Oper expenses 545,684 578,598 1,086,448 1,127,600
 INCOME FROM OPERATNS 20,493 21,602 45,765 33,357
 NONOPERATING EXPENSES:
 Interest expense 3,075 3,563 6,192 7,013
 Other, net 1,349 578 3,091 801
 Nonoper expense net 4,424 4,141 9,283 7,814
 INCOME BEF INCOME TAX 16,069 17,461 36,482 25,543
 PROV FOR INCOME TAX 6,113 6,206 13,463 8,707
 INCOME BEFORE CUMULATIVE EFFECT
 OF ACCTING CHANGE 9,956 11,255 23,019 16,836
 CUMULATIVE EFFECT OF CHANGE IN
 REV RECOGNTN METHOD - - (11,500) -
 NET INCOME $ 9,956 $ 11,255 $ 11,519 $ 16,836
 AVER COM SHRS OUTSTND 28,090 28,091 28,088 28,091
 EARNINGS PER SHARE:
 Income before cumulative effect
 of accting change $ .35 $ .40 $ .82 $ .60
 Net Income $ .35 $ .40 $ .41 $ .60
 OPERATING RATIO 96.4 96.4 96.0 97.1
 Pro forma amounts assuming the accounting
 change was applied retroactively:
 Net Income $ 9,956 $ 10,114 $ 23,019 $ 12,872
 Earnings Per Share $ .35 $ .36 $ .82 $ .46
 -0- 7/22/92
 /CONTACT: Phillip A. Spangler of Yellow Freight System, Inc. of Delaware, 913-967-4300/
 (YELL) CO: Yellow Freight System Inc. of Delaware ST: Kansas IN: TRN SU: ERN


BB -- DV014 -- 1899 07/22/92 12:20 EDT
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Date:Jul 22, 1992
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