Dear Shareholder,
We completed our first year as Yellow Roadway Corporation – and it was
a year of great accomplishment by any measure. The more than 50,000
members of our new company delivered record revenue and earnings while
returning substantial value to our shareholders. This annual report reviews
2004, and importantly, it looks to the future.We are more excited about the
opportunities in front of us than we are about our past accomplishments.
One year ago, we said we would continue to grow all of our brands following
the acquisition of Roadway – and we did. By providing outstanding service
from each of our individual operating companies, we increased revenue by
over 10 percent and created more than 2,000 new jobs.
We said we would reduce our cost base by $100 million run rate in 2004 –
and we did. Fifteen synergy teams, composed of employees across the
company, worked on nearly 120 projects. Their hard work and focus made
it possible to deliver on this commitment by identifying best practices
and eliminating redundant costs.
Finally, we said we would pay down debt and strengthen our financial
position – and we did. Through outstanding execution of our strategy, we
have reduced debt by over $250 million and have re-established a strong
and flexible balance sheet that provides a platform for future opportunities.
Each of our business units, Yellow Transportation, Roadway Express, New
Penn, Reimer Express, and Meridian IQ , as well as Enterprise Services
and the corporate staff, contributed significantly to this year’s success.
Our competitive position, scale and financial strength provide the foundation
as we continue to grow our brands and expand our international scope,
while reducing our cost base.We are focused on continuing to establish our
company as a leading provider of global transportation services.
2004 was a breakthrough year, but we are not "there yet." The journey
for Yellow Roadway continues…
William D. Zollars
Chairman of the Board,
President & CEO
Yellow Roadway Corporation |
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