Discussion in 'YRC Freight' started by mysticobra, Feb 19, 2015.
Didn't he go on to be a big wheel at Overnite ?
Yep. From YF VP to Preston CEO to Onite CEO. To paid off by UPS. In between fired by one of the railroads, I think?
Water under the bridge now, but Preston guys agreed to givebacks of 7%,5%,3%, full-scale. We did 7 and 5, then Suggs showed up and declared 'Boys, this won't work.' So we froze the 5, which grew to 9 after foregoing raises. Were sold, declared debt-free. The nmfa said if we closed in one year we'd be dovetailed into YF. We closed 13 months later....
Anyone thinking the 15% will go to full-scale is foolish. Yrc has the best lawyers $ can buy...
If I'm not mistaken he had a hand in the demise of PIE as well!
Did I hear correct???? We are getting uniforms???? What color shirt???? Pants???? Or no pants ????? Hats???? Or visors ?????
What color head bags? Do you wear that so no one sees you eating popcorn?
No. When I see a machine I take off my bag and fill it. Never know when you might run into a breakroom with a full binof popcorn !!!!
Sounds like you use the 'greasy kid stuff' on your hair.
I overheard one of our Drivers say that the Road Drivers are not getting them as of right now. Of course, this is just hear say. I will be disgruntled if LEHIGH vALLEY gets to wear one and I don't.
don't brothers share,???
You mean Ryder/PIE/Helms/Byrns/Transcon?
Folded up December 1990!
What hair ?????
P-I-E INC. NEGOTIATES TO PURCHASE TRANSCON
LEO ABRUZZESE | Jul 13, 1989 8:00PM EDT
P-I-E Nationwide Inc. is negotiating to acquire Transcon Lines Inc. and to secure the financing needed to combine the two trucking companies, according to sources close to the talks.
P-I-E's acquisition of Transcon would create the nation's fourth-largest truck line, with total revenue of more than $700 million a year.Both companies have faced recent financial troubles, however, and trucking analysts said merging the two freight lines could be risky.
Harold D. Doyle, president of P-I-E, and Orin S. Neiman, chairman of Transcon, each declined to comment on the possibility of an acquisition or merger between the two companies.
But other sources familiar with the talks, including senior Teamsters Union officials, said "serious negotiations" have taken place.
"Everything now depends on whether P-I-E can get the financing," a union source said.
P-I-E is privately held, but Transcon Inc., the holding company that owns Transcon Lines, is a public corporation trading on the New York Stock Exchange.
P-I-E, based in Jacksonville, Fla., lost more than $90 million in 1985, a record loss for any trucking company. But the freight carrier has recovered under new management and cut its 1988 operating loss to $5.8 million, according to financial reports filed with the InterstateCommerc e Commission.
P-I-E came close to breaking even in the fourth quarter and officials now say the company is making money.
Transcon Inc., based in Los Angeles, posted a $19.6 million loss in 1988 and dropped $4 million in this year's first quarter. The company has reduced its losses from 1988 but continues to suffer declines in tonnage.
The two freight lines have talked previously about a merger or sale, but ''something always got in the way," said a company official.
"P-I-E feels it would be a good fit," said a union source. "The big question is, how much of the combined traffic could they hold on to?"
Major mergers in the trucking industry have been notoriously unsuccessful. In 1987, for example, American Freight System Inc. of Overland Park, Kan., purchased Smith's Transfer Corp., of Staunton, Va. Both were among the trucking industry's 20 largest carriers.
Eight months later, severe losses related to merger costs forced American to close down.
Ironically, P-I-E is the product of the largest merger in trucking industry history. Pacific Intermountain Express Inc. and Ryder Truck Lines Inc. merged in 1983, producing a carrier with combined revenue of some $890 million.
The company deteriorated steadily until Mr. Doyle and Charles F. Rodgers, P-I-E's chairman, were brought in to manage the truck line in October 1987.
Several sources said P-I-E has been to Wall Street to seek financing for the Transcon acquisition, although specific details were not available.
The company likely would acquire only Transcon Lines, the main less-than truckload subsidiary of Transcon Inc. Keystone Lines, another subsidiary of the holding company, and other Transcon properties, would not be part of the sale.
Trucking analysts reacted cautiously to news of a possible merger.
"History is definitely against them," said James Voytko of Paine-Webber. ''Most of these mergers just haven't worked. And with the economy softening, you'd have to rate the economic climate neutral to somewhat negative."
But Mr. Voytko said the company may face better prospects than past merger candidates.
"There's an intangible here that could help them succeed," he added. ''Some of their people, the terminal managers, the sales staff and the union, have been through this before (with the Ryder/P-I-E). And this is a people business."
Richard Holt of Prudential Bache Securities agreed.
"P-I-E already has shown a tremendous ability to endure," he said. "And they've done this through a tremendously difficult operating environment for the trucking industry."
P-I-E and Transcon are both national trucking companies, but P-I-E is strongest in the East and Transcon historically has done much of its business in the Western states.
Analysts said the geographic fit is a plus for the two companies.
Moreover, Transcon and P-I-E have similar computer systems, an important consideration if the companies are combined. American and Smith's encountered severe computer problems shortly after their merger, which hurt service and contributed to the company's demise.
If P-I-E acquires Transcon, analysts said, the companies must quickly cut costs by eliminating overlapping operations.
They have $ to pay for uniforms ? GREAT ! GIVE ME MY 15% BACK ! ! ! !
Mr. Leo H. Suggs serves as a Consultant of Centerbridge Partners, a New York based private equity firm. Mr. Suggs served as the Chairman and Chief Executive Officer of UPS Freight LTL since April 1996 and served as its President. He has been the Chief Executive Officer of Greatwide Logistics Services, Inc., since February 2010. Mr. Suggs has a long and distinguished career in the trucking industry that began in 1958. He served as the Chairman, President and Chief Executive ... Officer of UPS Freight (known as Overnite Corp. and UPS Ground Freight Inc.) since July 31, 2003. From 1993 to 1996, he served as the President and Chief Executive Officer of Preston Trucking Company, Inc., a LTL. He served as the Chairman and Chief Executive Officer of Union Pacific Corp.'s subsidiary OTC. He has 50 years of experience in the trucking industry. Prior to 1996, Mr. Suggs served as the President and Chief Executive Officer of Preston Trucking Company Inc., a LTL carrier, and held various executive positions with Yellow Corporation and Ryder/PIE Nationwide Inc. He served as the Chairman of Greatwide Logistics Services, Inc., a provider of transportation and logistics management services since 2009. He has been Director of UPS Freight LTL since 1996 and of Old Dominion Freight Line Inc. since 2009. He serves as a Director of Transportation 100 Holdco, L.L.C (formerly Greatwide Logistics Services, LLC).
Read it and weep, the Transcon - PIE fiasco.
Yeah I miss those hoop-step freightliners . . . NOT!
Yeah! And now the pension funds want to cut these "orphans" pension benefits too?! What a double whammy!
These Broke companies did not have the money to pay the pension, but they had enough money to pay high priced lawyers to find the loop holes to close the companies and keep the assets. What a crook of crap. This was a good read, thanks! I always though Associated Transport and Eastern Freightways, were the two largest to get together. That is before Yellow and Roadway.
we vote tell we get it right.... remember