Yellow's Income Rises 27% In '99
January 27, 2000
Yellow Corp., Overland Park, KS, reported net income for the fiscal year ended Dec. 31, 1999 of $50.9 million, up 27 percent over 1998 income of $40.1 million. Revenue for the year was $3.2 billion, up 11.2 percent from $2.9 billion in 1998.
Chairman Bill Zollars said the company came close to having their most profitable year in the 1990s. "As expected, Jevic was a positive contributor to earnings during the second half," he said. "Saia, which suffered from business softness early in the year, made good progress in getting back in position to resume its strong growth trend. We worked through a major acquisition and leadership transitions at WestEx, Saia and Yellow Corp. without breaking stride."
Yellow Freight System, the company's largest subsidiary, reported 1999 operating income of $85.4 million, up 27.7 percent from 1998. Revenue was $2.6 billion, up 4.8 percent, while 1999 operating ratio was 96.7, versus 97.3 in 1998.
During 1999, the four carriers comprising the Yellow Corp. regional group - Saia Motor Freight Line, Jevic Transportation, WestEx and Action Express - reported combined operating income of $27.4 million, compared with $23.6 million in 1998. Revenue for the group increased 45.7 percent to $594.5 million, from $408 million in 1998. The acquisition of Jevic in July 1999 and Action Express in December 1998 accounted for almost all of this increase. The combined operating ratio of the regional group was 95.4 in 1999, compared to 94.2 in 1998.
In addition to the financial reports, Yellow announced that corporate chief financial officer H.A. "Bert" Trucksess has been named president of the company's regional carrier group. Hiram A. Cox, Yellow Freight System senior vice president and chief financial officer, will succeed Trucksess as Yellow Corp.'s senior vice president and chief financial officer.