Yellow Roadway's Second-Quarter Earnings Surge
ess-than-truckload carrier Yellow Roadway Corp. reported late Thursday its second-quarter net income rose 62% to $76.1 million or $1.38 a share, compared with $46.9 million or 97 cents a year earlier.
The increases were based in part on higher rates amid an expanding economy, Bloomberg reported.
The company had said June 24 it expected its second quarter earnings to be at the “high end” of $1.35 to $1.40 per share. (Click here for previous coverage.)
In late May, Yellow Roadway completed its $1.37 billion purchase of LTL carrier USF Corp. for $1.37 billion. (Click here for previous coverage.)
The company reported increased earnings at all its business units, including Yellow Transportation, Roadway Express and Meridian IQ.
Yellow Transportation reported its revenue rose 7.4% to $851 million, while income before interest and taxes rose 50% to $68.5 million.
Roadway Express took in $831 million in revenue, an 8.2% increase, with income before taxes and interest rising 41% to $51.2 million. Rates at Roadway rose 3.6% excluding fuel surcharges, Bloomberg said. It was Roadway’s highest-performing second-quarter in its history.
Yellow Corp. acquired Roadway Corp. in December 2003. (Click here for previous coverage.)
Meridian IQ, Yellow Roadway's logistics subsidiary, reported its revenue rose 89% to $96 million for the quarter, including USF’s logistics unit. The quarter’s revenue rose 36% excluding the USF revenue since May 25.
YRC Transportation — including the New Penn Motor Express, USF Bestway, USF Holland and USF Reddaway units — saw its LTL revenue rise 13.4% from the second-quarter of last year, with LTL tonnage per day up 5.8%.
