Yellow Lowers Guidance; Names New Roadway President

September 9, 2005 9:15 AM, EDT

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ellow Roadway Corp. said Thursday that it lowered its third-quarter earnings guidance in part due to the impacts of Hurricane Katrina.

The less-than-truckload carrier lowered its third-quarter guidance to $1.40 to $1.45 a share, from previous guidance of $1.60 to $1.65.

Yellow also said it named Michael Smid the new president of Roadway Express. Smid, previously president of YRC Enterprise Services, replaced Robert Stull, who retired after 28 years with Roadway.

It said it will adjust its full-year guidance when it announces its third-quarter results in late October.

Yellow, No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers, cited Katrina has having about a 5-cent per share impact on the quarter, with the remaining shortfall primarily a result of "implementation challenges for new processes at Roadway and the associated learning curve that negatively affected efficiency."