Yellow Roadway Corp. said it expects third quarter 2005 adjusted earnings per share (EPS) to be in the range of $1.40 to $1.45.
The company's previous guidance was $1.60 to $1.65 per share for the quarter. Full year 2005 EPS guidance will be updated when the company announces third quarter results in late October.
Yellow Roadway cited the following reasons for its updated guidance:
-- The devastation caused by Hurricane Katrina. While the situation continues to unfold, current estimates indicate the hurricane will have about a $.05 per share impact on the third quarter.
-- The remaining shortfall is primarily a result of implementation challenges for new processes at Roadway and the associated learning curve that negatively affected efficiency.
"While our results have been impacted by the one-time event of Hurricane Katrina, our most significant opportunity is the improvement of productivities at Roadway Express," stated Bill Zollars, chairman, President and CEO of Yellow Roadway.
Yellow Roadway also announced the appointment of Michael J. Smid as the president of Roadway Express. Smid was previously the president of YRC Enterprise Services and chief integration officer. In this position, he led the shared services functions and was responsible for managing the company's synergies for the Roadway and USF acquisitions. "Over the last few years, Mike has gained a thorough knowledge of Roadway which will allow him to have an immediate impact on the business," added Zollars.
Effective immediately, Smid will replace Robert L. Stull, who has retired after 28 years with Roadway.
The company's previous guidance was $1.60 to $1.65 per share for the quarter. Full year 2005 EPS guidance will be updated when the company announces third quarter results in late October.
Yellow Roadway cited the following reasons for its updated guidance:
-- The devastation caused by Hurricane Katrina. While the situation continues to unfold, current estimates indicate the hurricane will have about a $.05 per share impact on the third quarter.
-- The remaining shortfall is primarily a result of implementation challenges for new processes at Roadway and the associated learning curve that negatively affected efficiency.
"While our results have been impacted by the one-time event of Hurricane Katrina, our most significant opportunity is the improvement of productivities at Roadway Express," stated Bill Zollars, chairman, President and CEO of Yellow Roadway.
Yellow Roadway also announced the appointment of Michael J. Smid as the president of Roadway Express. Smid was previously the president of YRC Enterprise Services and chief integration officer. In this position, he led the shared services functions and was responsible for managing the company's synergies for the Roadway and USF acquisitions. "Over the last few years, Mike has gained a thorough knowledge of Roadway which will allow him to have an immediate impact on the business," added Zollars.
Effective immediately, Smid will replace Robert L. Stull, who has retired after 28 years with Roadway.
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