Nobody from Roadway says thats the Roadway. Everybody from Roadway knows theat company is long gone. Roadway was cash rich debt free just like that other Union company ABF. If you want to make things better, Why dont you ask Mike Sweeny what you could do to help or are just to much of a flake to follow in the footsteps of someone named Chuck. If you dont know who Charlie is, you are not from Chicago.
Yellow | Is 710 members afraid to fight?
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I know that Mr Charlie B was'nt the most liked guy in the union, but he was the most hard fighting steward, organizer, BA That we had. I have seen him take up for members that he personaly could'nt stand and give them the best representation he had, just because he was a Union Brother. You did'nt have to like his politics , but he was there when you needed his representation or help. Besides, he was the only B A to ever get a warning letter from Ron D issued to him.
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cellblock309
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ithink you better check your figures roadway was not debt free when yrcw bought them not that it really matters
Upon representation, Your not talking about the time Porkchops put up all of those gay p*on posters in his truck as a joke, which upset a yard guy who hooked up his tractor. I got a real good laugh out of that one!
Do you really want to compare the way Roadway handled thier money compared to Zollars.
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cellblock309
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this isnt about zollars stick to topic ......... first of all before yellow bought roadway yellow and roadway where benifiting from cf going under if these 2 companys stayed seperate they both would go under becuase the non unioun ltl get bigger and bigger every year and expanding these companys dont have the legacy costs which is a huge advantage , takes longer to top pay etc. no work rule constraints thats why we cant compete on the same level they get more out of less employees so they can absorb higher fuel prices etc , then us........................... so i believe if these companys stayed seperate and yellow would have never bought roadway....by2020 they would both be out of business unless there sister companys kept them in the black as a whole corporation
``I'm struggling a little bit with the valuation,'' said Gregory E. Burns, J.P. Morgan's trucking analyst. The deal values Roadway at $48 a share, a 60 percent premium above Monday's closing price, and it requires Yellow to assume $140 million in debt.
so thats why i thought they where in debt you might be right so find how much cash roadway had
AP: Yellow Buys Rival Trucking Company Roadway
July 8, 2003
AP: Yellow Buys Rival Trucking Company Roadway
July 9, 2003
Trucking giant Yellow Corp. on Tuesday agreed to buy rival Roadway Corp. for $966 million in cash and stock, a large premium in a deal that would further consolidate an industry plagued by bankruptcies in recent years.
The near-term strategy for the combined Yellow-Roadway Corp. will be to reduce back-office costs such as payroll and insurance, not to compress the delivery network by closing terminals and laying off truckers, Yellow CEO Bill Zollars said in an interview. This approach will result in job cuts of less than 2 percent and will bring $45 million in savings by the end of the second year, Zollars said.
``Our fundamental approach is to keep both brands in the marketplace,'' Zollars said.
Yellow and Roadway are less-than-truckload carriers, meaning they consolidate freight from multiple customers, and Zollars said they would continue to compete with each other. He compared it to General Motors' ownership of the Pontiac and Buick brands.
``Our bottom line is that we're looking to grow the company, not shrink it,'' said Zollars.
Down the road, though, Zollars said Yellow-Roadway might look to integrate or differentiate the separate brands, and that could lead to terminal closures and more job cuts. If the deal goes through, Yellow-Roadway would control more than 15 percent of the less-than-truckload market.
A spokesman for the International Brotherhood of Teamsters, which represents 35,000 truckers between the two companies, said the deal ``raises serious questions about job security.''
Several analysts, meanwhile, said they were baffled by the strategy underpinning the acquisition, saying they assumed Yellow would want to cut costs more aggressively given the high price paid for Roadway.
``The synergies represent less than 1 percent of revenue. Why go through all of this for that?'' said Geoffrey Rosenberger, managing director of Clover Capital Investment Inc.
``I'm struggling a little bit with the valuation,'' said Gregory E. Burns, J.P. Morgan's trucking analyst. The deal values Roadway at $48 a share, a 60 percent premium above Monday's closing price, and it requires Yellow to assume $140 million in debt.
On Tuesday, shares of Roadway soared $16.08, or 54 percent, to $46.10 on the Nasdaq Stock Market, where shares of Yellow fell $1.24, or 5.1 percent, to $23.25.
Bear Stearns trucking analyst Edward M. Wolfe lauded the deal, saying it would leave the industry ``right sized'' with just two major players in the long-haul, less-than-truckload business: Yellow-Roadway and Arkansas Best Corp. Shares of Arkansas Best jumped $4.10, or 17.1 percent, on Tuesday to $28.10 on Nasdaq.
The announcement also sent the stock prices of other trucking companies slightly higher on expectations that Yellow-Roadway would lose some customers amid the confusion of coordinating operations and that enough excess capacity would be taken out of the system to cause shipping prices to rise.
Indeed, the industry benefited over the past year from the collapse of Consolidated Freightways, which filed for Chapter 11 in September and liquidated its assets. That enabled Yellow, Roadway and other competitors to snap up market share even as overall business activity lagged.
On Tuesday, Roadway cited the closure of Consolidated when it reported 12.5 percent growth in net income for the second quarter. The company earned $6.3 million, or 33 cents per share, up from $5.6 million, or 30 cents per share, a year earlier. The profit was in line with analysts expectations. Revenue for the quarter grew by 13 percent to $741 million.
Even before Consolidated's bankruptcy, though, large trucking companies had been reporting higher freight levels as they divvied up the cargo of thousands of smaller carriers that went out of business as a result of the economic downturn and higher costs for health care and security.
Now, Zollars said, freight levels are picking up because of stronger demand from the manufacturing sector over the past two months, signaling the possibility of an economic recovery. Demand from the retail sector, he added, has been flat.
In the year ending March 31, Yellow and Roadway had combined revenue of nearly $6 billion. Once combined, the companies said they expect to save $45 million by the end of their second year together. The half-cash, half-stock deal would boost earnings within a year, the companies
Home » Transportation & Distribution» Yellow Corp buys Roadway
Yellow Corp buys Roadway
Jul 10, 2003 12:00 PM
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The purchase price is approximately $966 million or about $48 per share of Roadway. Since Yellow is also assuming $140 million in Roadway debt, when all is said and done, the final cost to Yellow will be about $1.1 billion. Combined income for the two LTL carriers year over year through the first quarter of 2003 is $6 billion.
The new entity will be called Yellow-Roadway, with all points nailed down within a year. Although there will be an automatic look at the deal by the Federal government for violation of monopoly laws, an okay is expected.
Comments by executives of the new entity indicate that shippers should see no immediate changes in their business dealings with Yellow-Roadway -- it is their intention to keep both brands in the marketplace. Initially the strategy is to cut back office expenses, not to close terminals and lay off drivers. The anticipation is that these early moves will result in savings in the neighborhood of $45 million.
Bill Zollars, current President and CEO of Yellow, will be Chairman, President and CEO of Yellow-Roadway. “This strategic combination brings the strengths of Yellow and Roadway together to capture significant synergies and growth opportunities,” said Zollars. “While there will be no change in the customer interface, customers can benefit from new and expanded service capabilities and greater technological advances.”
James D. Staley, present President and CEO of Roadway, will continue to head the Akron OH-based carrier in the new entity. “Our decision to combine with Yellow Corporation is an excellent step forward for our company,” he said. “Given the similarities in transportation operations, capabilities and union relations our companies share, partnering with Yellow is a logical move that clearly positions our combined organization for long-term growth and success.”
local 710
I have not seen him as of yet, didn't pat say to call him directly now with questions, comments or concerns. That's what I heard him say at the meeting. ed seems to be a nice guy but I would rather have a jag off BA who takes care of the members. If I dont do my job my ars is gone with the quickness, don't know how ed gets a pass.
I have not seen him as of yet, didn't pat say to call him directly now with questions, comments or concerns. That's what I heard him say at the meeting. ed seems to be a nice guy but I would rather have a jag off BA who takes care of the members. If I dont do my job my ars is gone with the quickness, don't know how ed gets a pass.
local 710
Charlie B was a good guy, he would call for no reason at all but to see how every thing going. He would go to les bros on 95 th street to hang out with all the drivers. How do we get him back ?
Charlie B was a good guy, he would call for no reason at all but to see how every thing going. He would go to les bros on 95 th street to hang out with all the drivers. How do we get him back ?
local 710
If ED cared about the union or the members be would admit he's not the man for the BA job and step down. They can find something else for him to do at the hall. With the new pressure being applied from our membership somethings got to give.
If ED cared about the union or the members be would admit he's not the man for the BA job and step down. They can find something else for him to do at the hall. With the new pressure being applied from our membership somethings got to give.
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Myplace710
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All I can tell you is that I would see chuck come out of rons office and I would see ron was actually shaking and he would stand outside visually shaking and chuck would be in the lunch room laughing with the drivers. Now I see ron come out of the office he and Eddie would be laughing together. I’m not accusing anything here but the last time I saw a scene like that it was a movie called “Broke Back Mountain”
The information you give shows Roadway as profitable and you want to compare 140 million in debt to 1.3 billion in debt. Thats the past, in the future I want us profitable, money in the bank and debt free.
cellblock309
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once again you cant stick to the point (roadway was in debt) you need to be a politician what does that have to do with thsubjectcy nothing 1.3 billion for buying roadwayHollandnd etc worst economy we have seen since the great depressionon last 4 years ......ask people who bought 500,000 house in las Vegasas Floridada etc 6 years ago and now they cant sell for 250,000. guess they all where dumb like zollars hope you or family, friend wasn'tnt one of those people that are in that positionon and to all thpeopleim tired of blame bill zollars he made choice and they went wrong cause the economy just like a coach in sports...... easy to second guess a play call ..... if works hes a hero .if it dosent people cry he should be fired
Cry the coach get fired???? Demand would be a better word.....Coach that does'nt produce winning results.....for what ever the reason.......ya lets keep him. Good Plan
