End of the Line: Yellow Goes Under
A problem since the mid-2000s, the company never recovered from the GFC
Frieght Waves’s Todd Maiden provides the story and analysis:
The biggest bankruptcy in U.S. trucking history could occur in the coming days when the nation’s third-largest less-than-truckload carrier, Yellow Corp., files. The company ceased all operations at noon on Sunday, and leadership representing its Teamsters workforce said it had been notified of a pending bankruptcy filing.
The company is still shopping a small 3PL unit, which may delay a filing. However, it laid off most of its nonunion workforce last week and told union employees on Sunday afternoon not to show up.
While the Nashville, Tennessee-based company saw operations deteriorate rapidly in recent months as it unsuccessfully attempted to push through operational changes with its union workforce, its ultimate failure was anything but sudden.
Bankruptcy filing years in the making
A series of large LTL and other acquisitions in efforts to transform Yellow into a global transportation and logistics leader, the ambition of former Chairman and CEO William “Bill” Zollars, were the catalysts for an eventual downfall.
In 2003, Yellow acquired Roadway in a $1.1 billion deal and then leveraged up in 2005 to acquire USF for $1.47 billion. The goal was to emerge with a command position in the LTL space, allowing the company to leverage larger scale into greater operating and cost synergies.
A much bigger organization with a debt-laden balance sheet, the company took on the YRC Worldwide moniker in 2006 as it had become a holding company for numerous transportation and logistics brands operating in more than 70 countries around the world. In that year, it would see its revenue increase more than threefold since the buying spree began to nearly $10 billion, with earnings per share of roughly $5, or $277 million in net income. That would be the financial pinnacle for the company as a freight recession would take hold that year, followed by a near collapse in financial markets two years later.
However, YRC continued to grow through the freight downturn and with a more cumbersome debt profile in place…[My emphasis.]
More at FreightWaves.com. [ Archive of article]
Result: 22,000 truck-driving Teamsters are no longer employed…30,000 total employees.
Biden’s Manufacturing Boom is a Lie
From the Zero Hedge Article:
The majority are government subsidized green tech factories as part of Biden's “Inflation Reduction Act.” Meaning, they are jobs created using your tax dollars through socialist programs, not free market demand. Not only that, but a number of these factories are being built by foreign companies, not American companies. For example, JA Solar, a Chinese company, plans to build factories in Arizona while benefiting from Biden's subsidies. Meyer Burger Technology, a company out of Switzerland, is also building solar factories in Arizona.
And what happens when the government props up an industry without equal market demand? What happens when a manufacturing "boom" siphons American cash to foreign interests? It ends up destroying wealth, not creating wealth. In other words, Biden is using billions in taxes to falsify economic numbers in the short term as a means to get re-elected. [My emphasis.]
Manipulation of the numbers…this is becoming the standard OP for Washington, D.C. Big lies, foreign and domestic.