May 25, 2005 8:00 AM, EDT

Yellow Roadway Lowers 2Q Outlook Following USF Deal

Company Raises Forecast for Full Year

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ellow Roadway Corp. lowered its second-quarter income forecast by 2 to 3 cents a share following its purchase of USF Corp., which closed Monday, Bloomberg reported.

The less-than-truckload carrier raised its full-year forecast to between $5.35 and $5.50 a share, up from a previous $5.10 to $5.30 per-share forecast before the USF acquisition, Bloomberg reported.

Yellow Roadway’s Chief Executive Officer Bill Zollars said at an investors' meeting in New York Monday that the company’s goal is to save $150 million over three years in combined efficiencies following the USF deal.

Those include combining technology functions and changing pickup and delivery schedules, Bloomberg reported.

The USF companies will join New Penn Motor Express to form YRC Regional Transportation, which will be headed by Jim Staley, former president of Roadway. YRC Regional Transportation will be headquartered in Akron, Ohio.

Yellow Roadway plans to add about 9 million shares of stock following the sale, bringing its total to about 58 million for the year, Bloomberg said.