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YELLOW FREIGHT REPORTS THIRD QUARTER FINANCIAL RESULTS

 YELLOW FREIGHT REPORTS THIRD QUARTER FINANCIAL RESULTS
 OVERLAND PARK, Kan., Oct. 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 third quarter was $571,287,000, down 6.1 percent compared to $608,089,000 in the third quarter of 1991. Net income for the quarter was $11,558,000, or $.41 per share, up 37.6 percent from the $8,399,000, or $.30 per share, recorded in the third quarter last year. The operating ratio improved from 97.1 in last year's third quarter to 96.2 this year.
 Operating revenue in the first nine months of 1992 was $1,703,500,000 and net income was $34,577,000, or $1.23 per share, versus $1,769,046,000 of operating revenue and net income of $25,235,000, or $.90 per share, for the comparable period of 1991. Current year net income is before the impact of a nonoperating charge of $11,500,000, or $.41 per share, recorded in the first quarter. For the nine months the operating ratio improved from 97.1 in 1991 to 96.0 this year.
 For the quarter, total tonnage at Yellow Freight, the company's primary motor carrier subsidiary, was down 7.8 percent while LTL (less- than-truckload) tonnage was down 8.3 percent versus the same quarter last year. Third quarter total tonnage, however, was up 0.6 percent and LTL tonnage was up 1.2 percent when compared to the second quarter of this year. All the above comparisons are based on the same number of working days. For the first nine months of 1992 total tonnage per day was down 5.5 percent while LTL tonnage per day was down 6.0 percent.
 According to Powell, "The improvement in profitability reflects Yellow Freight's success in resisting additional price discounting while continuing to emphasize efficiency, cost control and high levels of customer service." Safety programs have reduced the frequency and duration of workers' compensation claims, reducing costs in the third quarter, while labor efficiency is up compared to last year. The average load per trip again increased this quarter versus a year ago. A change of operations, discussed in last quarter's report, was implemented in August and required a one-time charge to operating earnings of $1.5 million.
 Effective the week of September 7 Yellow Freight initiated scheduled service to and from Western Europe. Yellow Freight has teamed up with The Royal Frans Maas Group, a major European transport and logistics firm, to provide this offering.
 On September 29 Yellow Freight notified its sales force of its intention to implement a general rate increase in January, 1993. Further information regarding the increase will be provided in early November.
 The Board of Directors of the company declared a quarterly dividend today of 23 1/2 cents per share to be paid November 16 to shareholders of record as of November 2.
 STATEMENTS OF CONSOLIDATED INCOME
 Yellow Freight System, Inc. of Delaware and Subsidiaries
 For the Quarter and Nine Months Ended September 30, 1992 and 1991
 (Amounts in thousands except per share data)
 (Unaudited)
 Third Quarter Nine Months
 1992 1991 1992 1991
 OPERATING REVENUE $571,287 $608,089 $1,703,500 $1,769,046
 OPERATING EXPENSES:
 Sal wages & emply ben 387,764 413,805 1,158,669 1,197,823
 Oper expenses & suppl 74,290 81,289 214,855 241,698
 Oper taxes & licenses 20,898 21,480 63,165 63,394
 Claims & insurance 13,338 15,423 38,923 41,540
 Communications & util 7,342 7,909 23,317 23,990
 Depreciation 28,722 30,663 88,986 94,283
 Purch trnsprt & rents 17,112 19,850 47,999 55,291
 Total oper expenses 549,466 590,419 1,635,914 1,718,019
 INCOME FROM OPERATNS 21,821 17,670 67,586 51,027
 NONOPERATING EXPENSES:
 Interest expense 3,012 3,569 9,204 10,582
 Other, net 864 1,478 3,955 2,279
 Nonoper expenses net 3,876 5,047 13,159 12,861
 INCOME BEF INCOME TAX 17,945 12,623 54,427 38,166
 PROV FOR INCOME TAX 6,387 4,224 19,850 12,931
 INCOME BEFORE CUMULATIVE EFFECT
 OF ACCNTING CHANGE 11,558 8,399 34,577 25,235
 CUMULATIVE EFFECT OF CHANGE IN
 REVENUE RECOGNITION METHOD - - (11,500) -
 NET INCOME $ 11,558 $ 8,399 $ 23,077 $ 25,235
 AVER COM SHRS OUTSTND 28,095 28,091 28,091 28,091
 EARNINGS PER SHARE:
 Income before cumulative effect
 of accting change $ .41 $ .30 $ 1.23 $ .90
 Net Income $ .41 $ .30 $ .82 $ .90
 OPERATING RATIO 96.2 97.1 96.0 97.1
 Pro forma amounts assuming the accounting
 change was applied retroactively:
 Net Income $ 11,558 $ 10,114 $ 34,577 $ 22,986
 Earnings Per Share $ .41 $ .36 $ 1.23 $ .82
 -0- 10/22/92
 /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: TNS SU: ERN


MC -- DV010 -- 3561 10/22/92 12:01 EDT
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Date:Oct 22, 1992
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