Archive for Friday, July 29, 2005

Yellow Roadway profits surge

July 29, 2005

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A Yellow Roadway truck travels south on Interstate 35 in Lyon County. Yellow Roadway Corp. on Thursday said second-quarter profit was up 62 percent.

A Yellow Roadway truck travels south on Interstate 35 in Lyon County. Yellow Roadway Corp. on Thursday said second-quarter profit was up 62 percent.

— Trucking and logistics company Yellow Roadway Corp. on Thursday said second-quarter profit surged 62 percent on stronger revenue from each of its business segments.

Net income rose to $76.1 million, or $1.38 per share, in line with the company's previous guidance of $1.35 to $1.40 per share for the April-June period. That compares with net income of $46.9 million, or 97 cents per share, a year ago.

Revenue jumped to $2.09 billion from $1.67 billion.

The earnings result met Wall Street's consensus estimate of $1.38, but sales fell slightly short of a targeted $2.17 billion, according to a survey of analysts by Thomson Financial.

Shares of Yellow Roadway rose 12 cents to close at $54.09 on the Nasdaq Stock Market, but slipped $1.09 to $53 in after-hours activity. The earnings report was released after the market close.

Each of the company's segments posted sales growth in the quarter. Yellow Transportation recorded revenue of $851 million, up 7 percent year-over-year, and Roadway Express saw revenue rise 8 percent to $831 million. Yellow's smaller Meridian IQ business reported the broadest sales expansion, up 89 percent to $96 million.

Bill Zollars, chief executive officer, praised what he called a strong quarter in terms of earnings-per-share growth and better operating margins.

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