Yellow Corporation Reports First Quarter Financial Results

-- Operating results on par with last year after excluding 2000 fuel

hedge impact;

-- All companies partially offset tonnage declines through variable cost

management and continued strong pricing environment;

-- Regional Carrier Group successfully completes business unit

integration at Saia;

-- Transportation.com exceeds first quarter expectations.



Apr 20, 2001, 01:00 ET from Yellow Corporation

    OVERLAND PARK, Kan., April 20 /PRNewswire Interactive News Release/ --
 Yellow Corporation (Nasdaq:   YELL) today announced that first quarter 2001
 earnings per share were $.22, before unusual items, compared with earnings per
 share of $.41 in the 2000 first quarter.  In the first quarter of 2000, a
 then-active fuel contract hedging program added $6.8 million in operating
 income, or $.17 per share.  When excluding the fuel hedge from first quarter
 2000 results, earnings per share were $.24, versus $.22 in the current
 quarter, before unusual items.
     Operating revenue for the first quarter was $832 million, compared with
 $882 million in the 2000 first quarter.  Consolidated operating income, before
 unusual items, was $18.4 million, compared with $25.1 million in the 2000
 first period.  Excluding the fuel hedge, operating income was $18.3 million.
     "On an apples to apples comparison of actual operating results, we
 delivered a respectable performance in the first quarter, given the dramatic
 slowdown in the economy," said Bill Zollars, Yellow Corporation Chairman,
 President and CEO.  "We aggressively managed our costs in the first quarter.
 In addition, our focus on flawless service execution and growth of premium
 services were big contributing factors in the increased pricing yields we have
 seen.  We continue to transform Yellow into a transportation services company
 that can better manage the cyclical risks inherent in our industry."
     Unusual items for the first quarter included a $5.4 million charge for the
 previously announced integration of WestEx and Action Express with Saia.
 Including all unusual items, first quarter 2001 earnings per share were $.07.
 
     Global Transportation Services
     Yellow Freight System, the company's largest subsidiary, reported first
 quarter operating income before unusual items of $14.2 million, down from
 $21.4 million in the 2000 first quarter.  When excluding $5.4 million derived
 from the fuel hedge program, 2000 first quarter operating income was
 $16.0 million.
     The first quarter operating ratio at Yellow Freight was 97.9, compared
 with 97.7 a year earlier when excluding the first quarter 2000 fuel hedge
 program.  Revenue for the first quarter was $635.6 million, versus
 $680.4 million in the 2000 first quarter.  On a per-day basis, first quarter
 revenue was down 5.1 percent over the prior year period.  LTL tonnage per day
 for the quarter was down 12.6 percent, while shipments per day were down 12.3
 percent.  Pricing yields remained strong.  LTL revenue per hundred-weight was
 up 8.6 percent from the 2000 first quarter.
     "The tonnage decline was due to the economy and was substantially offset
 with proactive cost management and good improvement in pricing yields,"
 Zollars said. "We continue to focus on delivering the service performance and
 service value that customers demand.  Performance and value are becoming more
 significant in the pricing equation."
 
     Regional Carrier Group
     At Saia Motor Freight Line, first quarter revenue was $119.1 million and
 operating income was $3.1 million, excluding one-time integration costs of
 $5.4 million.  In the 2000 first quarter, revenue was $118 million, and
 operating income was $2.1 million, excluding $1.4 million in fuel hedge
 benefits.  Revenue per day in the current quarter was up 2.5 percent over the
 2000 first quarter.  The first quarter operating ratio was 97.4, compared with
 97.0 in the year-earlier quarter. Excluding pre-integration January and
 February results from the western operations, Saia reported an operating ratio
 of 95.9.
     "Saia has done a commendable job of growing revenue during a period in
 which tonnage declined and in which it was also managing the integration of
 WestEx and Action Express," Zollars said.  "Thanks to intensive preparation,
 Saia pulled off a very complex task with no disruptions in service to
 customers.  Saia is now well positioned to offer highly reliable overnight and
 second-day service in its 21-state coverage area and should see sustained
 profitable growth."
     Jevic reported first quarter revenue of $76.9 million and operating income
 of $2.3 million, compared with 2000 first quarter revenue of $78.4 million and
 operating income of $4.0 million.  Revenue per day in the current quarter was
 even with revenue in the 2000 first quarter.  The first quarter operating
 ratio for Jevic was 97.0, compared with 94.9 in the 2000 first quarter.
     "Like most everyone else in the industry, Jevic battled the problems of a
 weakening economy in the first quarter," Zollars said.  "Both Jevic and Saia
 had effective cost controls in place to mitigate the weakness in the economy
 and both maintained strong levels of customer service."
 
     Transportation.com
     In the first quarter, Transportation.com concluded its first nine months
 of operation with positive momentum on a number of fronts.  Revenue for the
 first quarter was $6.7 million, including international freight forwarding,
 and Transportation.com experienced a 42 percent increase in total transactions
 over the first six months of operation.  Registered customers now total more
 than 8,400 companies.
     Transportation.com currently has 21 signed long-term contracts for a
 variety of services and an additional significant volume of contractual
 business in its sales pipeline.   Most of the contracts call for logistics
 services and are expected to contribute annualized gross revenue in excess of
 $70 million once they are fully implemented.
     "As Transportation.com continues to execute its business plan, it is
 quickly proving that there is a real market opportunity for a non-asset-based
 global logistics company that delivers services through best-in-class Internet
 technology," said Zollars.  "We remain confident that Transportation.com will
 be in the profit column by the end of 2001."
 
     Corporate and Other
     The first quarter results reflect an after-tax loss of $1.6 million or
 $.06 per share pertaining to ongoing business development expenses for
 Transportation.com.
     Yellow Corporation shareholders voted in the company's Annual Shareholders
 Meeting on April 19 to approve the re-election of eight directors and to
 approve the appointment of Arthur Andersen LLP as the Yellow Corporation
 independent accountant.
     Directors re-elected or elected for the first time to one-year terms are:
 Cassandra C. Carr (director since 1997); Howard M. Dean (director since 1987);
 Dennis E. Foster (director since 2000); Richard C. Green, Jr. (director
 joining the board in 2001); John C. McKelvey (director since 1977); William L.
 Trubeck (director since 1994); Carl W. Vogt (director since 1996); and William
 D. Zollars (director since April 1999 and Chairman since November 1999).
 
     Statements contained in this release that are not purely historical are
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995, including statements regarding the company's
 expectations, hopes, beliefs and intentions on strategies regarding the
 future.  It is important to note that the company's actual future results
 could differ materially from those projected in such forward-looking
 statements because of a number of factors, including but not limited to
 inflation, labor relations, inclement weather, price and availability of fuel,
 competitor pricing activity, expense volatility, changes in and customer
 acceptance of new technology and a downturn in general or regional economic
 activity.
     Yellow Corporation is a holding company with wholly owned operating
 subsidiaries specializing in the national, regional and international
 transportation of industrial, commercial and retail goods. Transportation.com
 http://www.transportation.com is a non-asset-based global network logistics
 company utilizing the world wide web to provide broad-based products, services
 and information to small- to medium-sized shippers and carriers.
 Transportation.com is funded by Yellow Corporation and several venture capital
 firms.  Headquartered in Overland Park, Kansas, Yellow employs approximately
 32,000 people.
 
 
                     STATEMENTS OF CONSOLIDATED OPERATIONS
                      Yellow Corporation and Subsidiaries
               For the Three Months Ended March 31, 2001 and 2000
                  (Amounts in thousands except per share data)
                                  (Unaudited)
 
                                                         2001           2000
 
 
     OPERATING REVENUE                               $831,978       $882,086
 
     OPERATING EXPENSES:
       Salaries, wages and benefits                   523,344        547,903
       Operating expenses and supplies                143,930        147,192
       Operating taxes and licenses                    28,237         28,193
       Claims and insurance                            18,491         20,966
       Depreciation and amortization                   31,865         31,460
       Purchased transportation                        67,677         81,285
       Unusual items(A)                                 5,991           (200)
         Total operating expenses                     819,535        856,799
 
     INCOME FROM OPERATIONS                            12,443         25,287
 
     NONOPERATING (INCOME) EXPENSES:
       Interest expense                                 4,065          4,885
       Loss in Transportation.com                       2,536              -
       Other, net                                       2,725          1,649
 
         Nonoperating expenses, net                     9,326          6,534
 
     INCOME BEFORE INCOME TAXES                         3,117         18,753
 
     INCOME TAX PROVISION                               1,371          8,276
 
     NET INCOME                                        $1,746        $10,477
 
 
     AVERAGE SHARES OUTSTANDING-BASIC                  24,036         25,154
 
     AVERAGE SHARES OUTSTANDING-DILUTED                24,399         25,299
 
     BASIC EARNINGS PER SHARE:                           $.07           $.42
 
     DILUTED EARNINGS PER SHARE:                         $.07           $.41
 
 
     Note:
     (A) Unusual items include integration costs and property gains and losses.
 
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SOURCE Yellow Corporation
    OVERLAND PARK, Kan., April 20 /PRNewswire Interactive News Release/ --
 Yellow Corporation (Nasdaq:   YELL) today announced that first quarter 2001
 earnings per share were $.22, before unusual items, compared with earnings per
 share of $.41 in the 2000 first quarter.  In the first quarter of 2000, a
 then-active fuel contract hedging program added $6.8 million in operating
 income, or $.17 per share.  When excluding the fuel hedge from first quarter
 2000 results, earnings per share were $.24, versus $.22 in the current
 quarter, before unusual items.
     Operating revenue for the first quarter was $832 million, compared with
 $882 million in the 2000 first quarter.  Consolidated operating income, before
 unusual items, was $18.4 million, compared with $25.1 million in the 2000
 first period.  Excluding the fuel hedge, operating income was $18.3 million.
     "On an apples to apples comparison of actual operating results, we
 delivered a respectable performance in the first quarter, given the dramatic
 slowdown in the economy," said Bill Zollars, Yellow Corporation Chairman,
 President and CEO.  "We aggressively managed our costs in the first quarter.
 In addition, our focus on flawless service execution and growth of premium
 services were big contributing factors in the increased pricing yields we have
 seen.  We continue to transform Yellow into a transportation services company
 that can better manage the cyclical risks inherent in our industry."
     Unusual items for the first quarter included a $5.4 million charge for the
 previously announced integration of WestEx and Action Express with Saia.
 Including all unusual items, first quarter 2001 earnings per share were $.07.
 
     Global Transportation Services
     Yellow Freight System, the company's largest subsidiary, reported first
 quarter operating income before unusual items of $14.2 million, down from
 $21.4 million in the 2000 first quarter.  When excluding $5.4 million derived
 from the fuel hedge program, 2000 first quarter operating income was
 $16.0 million.
     The first quarter operating ratio at Yellow Freight was 97.9, compared
 with 97.7 a year earlier when excluding the first quarter 2000 fuel hedge
 program.  Revenue for the first quarter was $635.6 million, versus
 $680.4 million in the 2000 first quarter.  On a per-day basis, first quarter
 revenue was down 5.1 percent over the prior year period.  LTL tonnage per day
 for the quarter was down 12.6 percent, while shipments per day were down 12.3
 percent.  Pricing yields remained strong.  LTL revenue per hundred-weight was
 up 8.6 percent from the 2000 first quarter.
     "The tonnage decline was due to the economy and was substantially offset
 with proactive cost management and good improvement in pricing yields,"
 Zollars said. "We continue to focus on delivering the service performance and
 service value that customers demand.  Performance and value are becoming more
 significant in the pricing equation."
 
     Regional Carrier Group
     At Saia Motor Freight Line, first quarter revenue was $119.1 million and
 operating income was $3.1 million, excluding one-time integration costs of
 $5.4 million.  In the 2000 first quarter, revenue was $118 million, and
 operating income was $2.1 million, excluding $1.4 million in fuel hedge
 benefits.  Revenue per day in the current quarter was up 2.5 percent over the
 2000 first quarter.  The first quarter operating ratio was 97.4, compared with
 97.0 in the year-earlier quarter. Excluding pre-integration January and
 February results from the western operations, Saia reported an operating ratio
 of 95.9.
     "Saia has done a commendable job of growing revenue during a period in
 which tonnage declined and in which it was also managing the integration of
 WestEx and Action Express," Zollars said.  "Thanks to intensive preparation,
 Saia pulled off a very complex task with no disruptions in service to
 customers.  Saia is now well positioned to offer highly reliable overnight and
 second-day service in its 21-state coverage area and should see sustained
 profitable growth."
     Jevic reported first quarter revenue of $76.9 million and operating income
 of $2.3 million, compared with 2000 first quarter revenue of $78.4 million and
 operating income of $4.0 million.  Revenue per day in the current quarter was
 even with revenue in the 2000 first quarter.  The first quarter operating
 ratio for Jevic was 97.0, compared with 94.9 in the 2000 first quarter.
     "Like most everyone else in the industry, Jevic battled the problems of a
 weakening economy in the first quarter," Zollars said.  "Both Jevic and Saia
 had effective cost controls in place to mitigate the weakness in the economy
 and both maintained strong levels of customer service."
 
     Transportation.com
     In the first quarter, Transportation.com concluded its first nine months
 of operation with positive momentum on a number of fronts.  Revenue for the
 first quarter was $6.7 million, including international freight forwarding,
 and Transportation.com experienced a 42 percent increase in total transactions
 over the first six months of operation.  Registered customers now total more
 than 8,400 companies.
     Transportation.com currently has 21 signed long-term contracts for a
 variety of services and an additional significant volume of contractual
 business in its sales pipeline.   Most of the contracts call for logistics
 services and are expected to contribute annualized gross revenue in excess of
 $70 million once they are fully implemented.
     "As Transportation.com continues to execute its business plan, it is
 quickly proving that there is a real market opportunity for a non-asset-based
 global logistics company that delivers services through best-in-class Internet
 technology," said Zollars.  "We remain confident that Transportation.com will
 be in the profit column by the end of 2001."
 
     Corporate and Other
     The first quarter results reflect an after-tax loss of $1.6 million or
 $.06 per share pertaining to ongoing business development expenses for
 Transportation.com.
     Yellow Corporation shareholders voted in the company's Annual Shareholders
 Meeting on April 19 to approve the re-election of eight directors and to
 approve the appointment of Arthur Andersen LLP as the Yellow Corporation
 independent accountant.
     Directors re-elected or elected for the first time to one-year terms are:
 Cassandra C. Carr (director since 1997); Howard M. Dean (director since 1987);
 Dennis E. Foster (director since 2000); Richard C. Green, Jr. (director
 joining the board in 2001); John C. McKelvey (director since 1977); William L.
 Trubeck (director since 1994); Carl W. Vogt (director since 1996); and William
 D. Zollars (director since April 1999 and Chairman since November 1999).
 
     Statements contained in this release that are not purely historical are
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995, including statements regarding the company's
 expectations, hopes, beliefs and intentions on strategies regarding the
 future.  It is important to note that the company's actual future results
 could differ materially from those projected in such forward-looking
 statements because of a number of factors, including but not limited to
 inflation, labor relations, inclement weather, price and availability of fuel,
 competitor pricing activity, expense volatility, changes in and customer
 acceptance of new technology and a downturn in general or regional economic
 activity.
     Yellow Corporation is a holding company with wholly owned operating
 subsidiaries specializing in the national, regional and international
 transportation of industrial, commercial and retail goods. Transportation.com
 http://www.transportation.com is a non-asset-based global network logistics
 company utilizing the world wide web to provide broad-based products, services
 and information to small- to medium-sized shippers and carriers.
 Transportation.com is funded by Yellow Corporation and several venture capital
 firms.  Headquartered in Overland Park, Kansas, Yellow employs approximately
 32,000 people.
 
 
                     STATEMENTS OF CONSOLIDATED OPERATIONS
                      Yellow Corporation and Subsidiaries
               For the Three Months Ended March 31, 2001 and 2000
                  (Amounts in thousands except per share data)
                                  (Unaudited)
 
                                                         2001           2000
 
 
     OPERATING REVENUE                               $831,978       $882,086
 
     OPERATING EXPENSES:
       Salaries, wages and benefits                   523,344        547,903
       Operating expenses and supplies                143,930        147,192
       Operating taxes and licenses                    28,237         28,193
       Claims and insurance                            18,491         20,966
       Depreciation and amortization                   31,865         31,460
       Purchased transportation                        67,677         81,285
       Unusual items(A)                                 5,991           (200)
         Total operating expenses                     819,535        856,799
 
     INCOME FROM OPERATIONS                            12,443         25,287
 
     NONOPERATING (INCOME) EXPENSES:
       Interest expense                                 4,065          4,885
       Loss in Transportation.com                       2,536              -
       Other, net                                       2,725          1,649
 
         Nonoperating expenses, net                     9,326          6,534
 
     INCOME BEFORE INCOME TAXES                         3,117         18,753
 
     INCOME TAX PROVISION                               1,371          8,276
 
     NET INCOME                                        $1,746        $10,477
 
 
     AVERAGE SHARES OUTSTANDING-BASIC                  24,036         25,154
 
     AVERAGE SHARES OUTSTANDING-DILUTED                24,399         25,299
 
     BASIC EARNINGS PER SHARE:                           $.07           $.42
 
     DILUTED EARNINGS PER SHARE:                         $.07           $.41
 
 
     Note:
     (A) Unusual items include integration costs and property gains and losses.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X03215477
 
 SOURCE  Yellow Corporation