Yellow Roadway Corp said its stock is “significantly undervalued” and has authorized a $50 million share repurchase.
The LTL carrier said Wednesday, Sept. 14 that it may buy back shares in the open market based on market price and availability of the stock, and that the program does not have an established expiration date.
The announcement came just six days after Yellow Roadway Corp. lowered third-quarter guidance because of an impact on its business caused by Hurricane Katrina and other items.
“This program reflects our confidence in the strategy of Yellow Roadway and the belief that our stock is significantly undervalued in the market,” said Bill Zollars, chairman, president and CEO. “As we continue to progress toward our targeted $450 million in combined Roadway and USF synergies, we believe our results will reflect the long-term value to shareholders.”
The company completed its $1.37 billion acquisition of regional trucking company USF Corp. in May. Since then, Yellow Roadway has launched a restructuring program to help better combine the two companies.
