Troubled Yellow Roadway unit on mend: CEO

Troubled Yellow Roadway unit on mend: CEO

The chief executive of newly-merged trucker Yellow Roadway Corp. said its troubled Roadway unit was recovering after a disastrous fourth quarter.

The Miami-based company's shares fell 20% last week after strong results at Yellow were offset by an unexpected drop in loads at Roadway.

The $966 million merger between the former rivals created the third-largest carrier behind United Parcel Service and FedEx Corp.

Yellow Roadway Chief Executive Bill Zollars on Wednesday cited a reorganization of Roadway's sales force and a spike in costs late in the fourth quarter for the unit's weakness.

His comments at a New York conference hosted by Goldman Sachs were reported by Dow Jones.

Zollars said costs and cargoes at Roadway had returned to near normal levels in January, the wire service reported, and that the carrier would offer monthly performance updates to quell market fears.