Yellow Roadway Corp. said Sept. 8 that its earnings in the third quarter will be 20 cents per share below previous guidance due primarily to “implementation challenges for new processes at Roadway and the associated learning curve that negatively affected efficiency.”
The effects of Hurricane Katrina represent about 5 cents of the 20 cents per share that Yellow Roadway is expecting to suffer. The company now says it expects adjusted earnings per share to be in the range of $1.40 to $1.45 for the quarter.
“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,” said Bill Zollars, chairman, president and CEO of Yellow Roadway.
In a related move, Yellow Roadway announced the appointment, effective immediately, of Michael Smid as president of Roadway Express, replacing Robert Stull, who has retired after 28 years with Roadway.
Smid previously was president of YRC Enterprise Services and chief integration officer. In that position, he led the shared services functions and was responsible for managing the company’s synergies for the Roadway and USF acquisitions. He has held a variety of management positions at Yellow Transportation since 1985.
“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,” Zollars said.