warned of a third-quarter earnings shortfall, citing productivity shortfalls and the effects of Hurricane Katrina.
The Overland Park, Kan., shipping company said it now expects to make $1.40 to $1.45 a share on a so-called adjusted basis for the quarter, down from the previous $1.60-$1.65 range.
Yellow cited the devastation caused by Hurricane Katrina, which it said would slash a nickel from third-quarter numbers. "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 CEO Bill Zollars.
Yellow Roadway also named Michael J. Smid president of Roadway Express, replacing Robert L. Stull, who has retired after 28 years with Roadway.
Late Thursday, Yellow shares fell $1.51 to $44.50.