It looks like a turnaround specialist heading up auto hauler Allied Holdings may be succeeding in pulling the company out of a four-year slump.

According to The Atlanta Journal and Constitution, President and CEO Hugh Sawyer says the company is "clearly making progress." The company's stock has risen about 25 percent in the past two weeks, but the company has still lost 92 percent of its value since its stock peaked in 1997. One New York investment advisory firm specializing in small-cap value stocks and companies in distress recently tripled the number of Allied shares in a partnership it runs.
Analysts told the paper that with Sawyer's moves to cut costs, lower debt, boost revenue and improve employee morale, they're hopeful the company has bottomed out and is now on the upswing.
After taking over in June, Sawyer made management changes, slashed 30 percent of its Decatur, Ga., headquarters staff, laid off drivers, closed four money-losing terminals, and raised rates through an 8.5 percent "administrative fee." Up to 800 drivers were laid off after the Sept. 11 terrorist attacks, according to the paper, but about 300 have been called back since auto makers' zero-percent financing promotions have resulted in record auto sales.
Allied has been struggling ever since it bought its rival Ryder Systems in 1997. Although the deal gave the company control of almost two-thirds of the car-hauling market, it also ballooned debt and interest costs. Analysts say the company did a poor job of integrating the two companies.
Sawyer, who has four company rescues to his credit, spent a brief stint at subsidiary Allied Automotive Group in 1999. He was lured back in June to run all of Allied after the vice chairman and the president left the company in February.