Yellow predicts strong earnings
Yellow Corp. said its merger with Roadway Corp. is on track and third quarter earnings will be in line with earlier guidance. Yellow said it expected earnings to range from 72 cents to 77 cents per share, excluding acquisition costs.
Third quarter acquisition costs are expected to total $7.8 million, primarily due to financing expenses and $400,000 in costs to integrate certain domestic assets of GPS Logistics with Meridian IQ.
Yellow said July and August business volumes are about 10 percent ahead of the same period in 2002, but that September levels are expected to return to normal without the spike created by extra volume from the closure of rival Consolidated Freightways.
The transportation conglomerate said the merger of its Yellow Transportation less-than-truckload unit and Roadway is on schedule to close by the end of the year.