YELLOW: BURNING UP THE ROADWAY?

摘要

Yellow Corp. Chairman and Chief Executive William D. Zollars is gearing up for an aggressive passing maneuver. The Overland Park (Kan.) trucking outfit is buying its slightly bigger rival, Akron's Eoadway Corp., the industry's No. 1 player, in a $1.1 billion deal that is expected to close by yearend. The takeover will create a North American giant with 50,000 employees, 18,700 truck tractors, 69,300 trailers, and yearly revenues of nearly $6 billion―or roughly 20% of a $30 billion industry known as less-than-truckload delivery. LTL shippers pick up smaller shipments, consolidate them at terminals, and then pack them into trailers for drop-off one by one. Zollars is betting that bringing the two shippers under one roof will not only save money but also create new service possibilities. He says he already has pinpointed at least $45 million in cost cuts. Besides, says the 55-year-old industry veteran, Yellow has to get bigger to compete. With its highly paid Teamsters drivers, it has been losing business to nonunion truckers. Meantime, FedEx Corp. and United Parcel Service Inc. have been grabbing sales as they take on bigger shipments. Zollars recently spoke about his strategy with BusinessWeek Senior Correspondent Michael Arndt.