Saia now has measures in place that will result in improved performance going forward. Saia finished the year with revenue of $349.3 million, up from $340.1 million in 1998, and operating income of $16.8 million, down from $24.7 million a year earlier.

WestEx and Action Express continued to make progress toward meaningful profitability. Both of these regional carriers provide valuable services to their customers and we’re confident that we will see real improvement in margins going forward. WestEx reported revenue of $70.9 million in 1999 and an operating ratio of 99.4. Action Express reported revenue of $36.5 million and an operating ratio of 99.6.

With its size and market potential, the time has come for full-time leadership of our regional transportation group. We recently did just that with the appointment of H.A.“Bert”Trucksess as President. Bert has served as Chief Financial Officer for Yellow Corporation since 1994 and has the experience and the talent to take this group to its next level of performance.

The Future

The pace of change in our industry continues to accelerate, pushed on by technology. We are on the leading edge of that change because Yellow has continued to reinvent itself.

The Yellow brand has always stood for quality service and quality people. That combination, coupled with technology investment, has created our ability to build sustained competitive advantage every day. And that is the key to our current and future success.

Sincerely,

William D. Zollars Chairman of the Board,
President and Chief Executive Officer
Yellow Corporation