Editorial: Mergers, Acquisitions Reshape TT 100 Rankings
Editor's Note: A print copy of the 2004 Transport Topics 100 may be purchased for $5.95 by calling TT Customer Service at (800) 517-7370. It will also be available online for free at a later date. Mergers and acquisitions were the primary moving force behind the changes in the trucking industry last year, as reflected in our 2004 TT 100 ranking of for-hire carriers that is included in this issue of Transport Topics. 
The biggest change in the new rankings resulted from Yellow Corp.’s acquisition of rival Roadway Corp. The combination of Yellow, which was No. 8 in the 2003 rankings, with what had been No. 6 — Roadway — yielded this year’s No. 3: Yellow Roadway. Some newcomers made the list after acquisitions during the year, including No. 55, Performance Transportation Services. PTS made the list in part on its acquisition of Leaseway Motorcar Transport from Penske Truck Leasing Corp. Other fleets moved up the rankings after making acquisitions or expanding into related niches. The new rankings also show the more positive financial results that companies saw during 2003, as the national economic recovery was beginning. Most analysts we interviewed in reporting on the TT 100 predicted more mergers ahead, especially among small- and medium-size fleets as they strive to compete with the ever-larger big fleets. The analysts said that growing demand from shippers for a wide array of related transportation services was also likely to fuel mergers and acquisitions in coming years. Our research showed that many fleets sliced their operating ratios over the year, led by Heartland Express (No. 43), which had a phenomenal 79 OR, and Knight Transportation (No. 57) with a terrific 82.5. While Heartland’s results were buoyed by a one-time adjustment related to workers’ compensation claims, the Coralville, Iowa, company would have had an operating ratio of 81 without the settlement, still the best on the list. Operating ratios, which show a company’s expenses as a percentage of its revenue, are a prime indicator of profitability, with an OR of 100 representing a break-even operation. Other fleets with ORs of 90 or less were UPS Inc. (No. 1), FedEx Corp. (No. 2), Forward Air Corp. (No. 70), CD&L Inc. (No. 93), USF Reddaway (No. 12), Prime Inc. (No. 32) and Stevens Transport (No. 62). While 2003 was a better year for most carriers, two sectors lagged well behind the overall industry: tank-truck carriers and vehicle haulers. Overall, revenue for the carriers in our listings rose 7% during 2003, compared with 2002. We will present our TT 100 rankings for private carriers next week. This story appeared in the July 19 print edition of Transport Topics. Subscribe today.
The biggest change in the new rankings resulted from Yellow Corp.’s acquisition of rival Roadway Corp. The combination of Yellow, which was No. 8 in the 2003 rankings, with what had been No. 6 — Roadway — yielded this year’s No. 3: Yellow Roadway. Some newcomers made the list after acquisitions during the year, including No. 55, Performance Transportation Services. PTS made the list in part on its acquisition of Leaseway Motorcar Transport from Penske Truck Leasing Corp. Other fleets moved up the rankings after making acquisitions or expanding into related niches. The new rankings also show the more positive financial results that companies saw during 2003, as the national economic recovery was beginning. Most analysts we interviewed in reporting on the TT 100 predicted more mergers ahead, especially among small- and medium-size fleets as they strive to compete with the ever-larger big fleets. The analysts said that growing demand from shippers for a wide array of related transportation services was also likely to fuel mergers and acquisitions in coming years. Our research showed that many fleets sliced their operating ratios over the year, led by Heartland Express (No. 43), which had a phenomenal 79 OR, and Knight Transportation (No. 57) with a terrific 82.5. While Heartland’s results were buoyed by a one-time adjustment related to workers’ compensation claims, the Coralville, Iowa, company would have had an operating ratio of 81 without the settlement, still the best on the list. Operating ratios, which show a company’s expenses as a percentage of its revenue, are a prime indicator of profitability, with an OR of 100 representing a break-even operation. Other fleets with ORs of 90 or less were UPS Inc. (No. 1), FedEx Corp. (No. 2), Forward Air Corp. (No. 70), CD&L Inc. (No. 93), USF Reddaway (No. 12), Prime Inc. (No. 32) and Stevens Transport (No. 62). While 2003 was a better year for most carriers, two sectors lagged well behind the overall industry: tank-truck carriers and vehicle haulers. Overall, revenue for the carriers in our listings rose 7% during 2003, compared with 2002. We will present our TT 100 rankings for private carriers next week. This story appeared in the July 19 print edition of Transport Topics. Subscribe today.
