Yellow Roadway Corp. increased its first quarter 2004 earnings per share guidance from $0.30 to $0.35 per share. This increase reflects the upper half of its original guidance for the quarter of $0.25 to $0.35 per share.
“Through February, all our operating companies met targeted levels of profitability,” said Bill Zollars, Yellow Roadway chairman, president & CEO.
LTL tonnage is showing improvement, despite last year’s closure of Consolidated Freightways. January LTL tonnage per day was down 5.5% and February’s LTL tonnage per day was down only 3.7%.
Yellow Transportation tonnage per day for January 2004 was up 3.1% from January 2003, and February 2004 increased 7.7% from the same month last year.
“March is a critical month of the first quarter, and we are maintaining our sharp focus on cost management and pricing discipline to deliver a solid quarter— our first as Yellow Roadway Corp.,” Zollars said.
Strong economic activity and positive performance indications of the consolidated company points to 2004 earnings guidance of $3 per share, give or take 10%, Zollars added.
In an effort to boost efficiency, Yellow Roadway is also in process of consolidating its terminals to streamline operations.
“Yellow Roadway is planning on merging terminals in 40 markets where both Yellow and Roadway facilities are operating at less than 50% capacity,” Rob Black of the International Brotherhood of Teamsters (IBT) said.
IBT said that no job losses are expected as a result of the consolidation. “It is our hope that this could ultimately lead to an increase in jobs,” Black added.