Yellow Roadway optimistic on 3Q
Sep 8, 2004 11:10 AM
Strong demand coupled with tight capacity in the LTL market is giving Yellow Roadway Corp. clout to get better rates - and that's boosting its third quarter earnings projections.
The LTL conglomerate is raising its earnings outlook for the third quarter to between $1.30 and $1.35 per share, up from its previous forecast of $1.20 to $1.25 per share.
"Our increased guidance is being driven by a more disciplined pricing environment and better-than-expected operating efficiencies from our business units," said Bill Zollars, chairman, president & CEO of Yellow Roadway. "Our ability to manage our expected business volumes while improving efficiency and price demonstrates the effectiveness of our strategy."
The higher projections follow robust gains in the second quarter, when the Overland Park, KS-based carrier reported earnings of 97 cents per share - more than double the 46 cent per share estimates. Operating revenue in the second quarter climbed 15% to $1.67 billion compared to the same period in 2003, Zollars noted.
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