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Yellow | yellow roadway corporation

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what is your observation as to the merger of the two companies, do you think it is a good thing or a bad thing and why? Also I see that Watkins is now Fedex

:smillie_flag:
 
I think everyone knew that once the program was put into action there were going to be changes. With changes there were going to be "winners and loosers". I'm not going to set here and gloat about 671 doing good in the COO because I know it could change in a whim from YRC. I do feel for my brothers that had to move or couldn't, for what ever reason. Union trucking has always been about change........lots and lots of our drivers started out at another terminal. At 671 we have benefited from the three companies comming to one, but all that could change............DS.
 
the crystal ball predicts a closing of duplicate coverage terminals in the near future. keep an eye out. i have heard rumors to this effect and won't post terminal numbers till they are confirmed.
 
axlethedriver said:
the crystal ball predicts a closing of duplicate coverage terminals in the near future. keep an eye out. i have heard rumors to this effect and won't post terminal numbers till they are confirmed.
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That will work only if one of the remaining terminals can handle the work of both terminals. This might work with Breakbulks, You can spread the work out a little but in a area with a 20 door Rex terminal and a 35 door Yellow terminal you will overwelm the remaining terminal.
So unless YRCW is ready to build bigger terminals and close smaller ones, (were talking BIG BUCKS here) don't look for alot of closings
 
I think it has helped us. Roadway that is. Yellow has cut deep into the fat at Roadway that they had for years. I have been told for years that Roadway always was financially great for decades. But times have changed and the market place has changed. I think it took Yellow to make the changes at Roadway for us to survive. This is just my opinion
 
Yellow is taking away everything that was good about Roadway....even the new trucks have no personality, I hardly even recognize them as they pass me by.
 
Toxic said:
I think it has helped us. Roadway that is. Yellow has cut deep into the fat at Roadway that they had for years. I have been told for years that Roadway always was financially great for decades. But times have changed and the market place has changed. I think it took Yellow to make the changes at Roadway for us to survive. This is just my opinion
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Toxic,

Prior to Roadway's acquisition of the Arnold companies, Roadway was a debt free company. However, even with the debt load that we had after the purchase, we were still in a better financial position than Yellow. Personally, I feel Roadway Corp. was the real cash cow of the merger and probably did more to keep Yellow afloat than the other way around. Also bear in mind that this was before Dollar Bill came to Yellow. I do feel that he has done a lot in terms of synergies to trim the fat all throughout YRCW.
 
Animo916 said:
Toxic,

Prior to Roadway's acquisition of the Arnold companies, Roadway was a debt free company. However, even with the debt load that we had after the purchase, we were still in a better financial position than Yellow. Personally, I feel Roadway Corp. was the real cash cow of the merger and probably did more to keep Yellow afloat than the other way around. Also bear in mind that this was before Dollar Bill came to Yellow. I do feel that he has done a lot in terms of synergies to trim the fat all throughout YRCW.
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Back in June, I read a transpotation analyst article in The Washington Post who stated after the contract neg in 2008, he sees us combining into one brand to compete with Fedx due to their buying of Watkins. He said Yellow and Roadway compete against eachother and make money but if we combined, we would make more. So who knows what will go on. We will not find out until it is time. Anyways, I am a driver. I will let the corporate people worry about that.
 
Short haul - Long Haul

eaglescout said:
what is your observation as to the merger of the two companies, do you think it is a good thing or a bad thing and why? Also I see that Watkins is now Fedex

:smillie_flag:
Click to expand...

Firstly b/4 this merger it was known that RDWY was looking to buy another regional carrier after we acquired New Penn. Word had it was Wilson out of Fischerville, VA, heck New Penn and Wilson still interline alot of frt into VA & NC. It would have made sense it keep something that works together very good intact and their trucks are the same color. Don't think Wilson has alot of pups in their fleet.

The Roadway/ Yellow idea was Yellow was going in the regional 1-2 day market as Roadway was going to the three day & out long haul. This is the same concept that the Watkins and FedEx deal is supposed to be working. Watkins is long haul and FedEx the 1-2 day regional market. Or better yet explained, up to 600 miles FedEx runs as regional and 600 and out Watkins provides service.

Wow we must be doing something right as this is a copy cat industry.
:punk:
 
YRCW Corporation Merger

Animo916 said:
Toxic,

Prior to Roadway's acquisition of the Arnold companies, Roadway was a debt free company. However, even with the debt load that we had after the purchase, we were still in a better financial position than Yellow. Personally, I feel Roadway Corp. was the real cash cow of the merger and probably did more to keep Yellow afloat than the other way around. Also bear in mind that this was before Dollar Bill came to Yellow. I do feel that he has done a lot in terms of synergies to trim the fat all throughout YRCW.
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I agree with you Animo.. Yellow Corporation definitely bought a "gold mine" Roadway Services was not Overnight or American Freight. They had the market place covered from coast to coast and even had things going on in other countries. All this coupled with there financial wealth and stability made it a "gold mine purchase"
I remember the video sent to all facilities just after the announcement. Jim S. said in it that they Yellow&Roadway had talked about it back in the past and could not come to any agreement. And Roadway Services bought New Penn when the talks fell through.
 
WOW!!! Toxic, Now thats a story that I never heard before nor do I believe it. with no disrespect to you. I believe that big R and Big Jim got caught with their pants down and Yellow started buying our stock right after we were spun off of Roadway **** svcs. Our stock at that time was around $5.00 or $6.00 a share; Dollar Bill had his head in the stock reports and Jim S. had his head in the clouds. That we were just another leverage buy out! There was no merger! No disrespect but thats what I heard way back when all this news of both company's becoming one came out.
 
fr8man said:
WOW!!! Toxic, Now thats a story that I never heard before nor do I believe it. with no disrespect to you. I believe that big R and Big Jim got caught with their pants down and Yellow started buying our stock right after we were spun off of Roadway **** svcs. Our stock at that time was around $5.00 or $6.00 a share; Dollar Bill had his head in the stock reports and Jim S. had his head in the clouds. That we were just another leverage buy out! There was no merger! No disrespect but thats what I heard way back when all this news of both company's becoming one came out.
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Couldn't happen that way. Any individual or company buying large blocks would have been noticed by the people who are paid to watch this stuff (so their people can jump on the band wagon, I have software that is available to investors that show who is buying in real time, called Level 2 quotes) and they sure didn't do it by buying blocks of 100 or 500 shares. Any entity acquiring or intending to acquire more than 5% of a company's outstanding shares has to file with the SEC on their intentions.
 
i think the next step in this evolutionary process will be a renaming for starters

ABFYRC and then ultimately
abcdefghijklmnopqrstuvwxyz freight lines
 
big steve said:
i think the next step in this evolutionary process will be a renaming for starters

ABFYRC and then ultimately
abcdefghijklmnopqrstuvwxyz freight lines
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aint gonna surpise me. im sure Bill Dollar$ makes frequent trips down to Ark.
 
Staley came to the Brooklyn terminal along with the video right after the announcement. He stated that the acquisition could have gone either wayand that it really didn't matter who bought who, as we were going to become greater together than the sum of our parts. All I know is that my terminal has freight up the wazoo and not enough people to handle it.
 
People forget that RDWY was the bigger company at the time of the aquisition. That is without even including NPME.

RDWY also was able to do something that Yellow could never do and that was to buy a small regional company (NPME) and keep them profitable. Every small company Yellow bought they destroyed.

I could see the Yellow 1-2 lanes and RDWY long haul and that all makes sense. I just never understood the USF purchase. They paid more for USF then RDWY if my memory serves me. I think RDWY was $900 million with some debt concessions which brought the buy in price to about 1.25 billion. The USF was closer to about 1.50 billion.

As far as what we have today. You have Yellow and RDWY, two traditional long haul carriers, trying to expand into regional markets.

Then you have USF and NPME two traditional regional carriers expanding into the long haul market.

SO you have three compnanies stepping all over each other....Not very effecient financially if you ask me.

I do think they are waiting for the next contract to see where things shake loose. In the meantime, they are making money, so no one complains, but from the outside, it sure looks like big changes are on the horizon.
 
You just watch though.....with this much freight and this much $$ being made, it is just a matter of time before someone gets greedy and the whole thing will come flying apart!! DS.
 
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