YRC Seeks Millions in Pension Payment Deferrals

YRC expects fewer facilities at year’s end

St. Louis Business Journal

YRC Worldwide Inc., which has 560 employees in the St. Louis area, expects to have 30 fewer facilities systemwide by year’s end than it said last month.The company is hosting an analyst meeting Tuesday and Wednesday at its Overland Park, Kan., headquarters. In a Tuesday filing with the Securities and Exchange Commission, the company (Nasdaq: YRCW) said it now expects to have 400 facilities at the end of 2009, down from its March projection of 430 facilities at year’s end.

YRC said in the SEC filing that it had 521 facilities, 37,000 employees and 16,700 trucks at the end of 2008. By the end of 2009, the company expects to have 34,000 employees and 14,000 trucks.

YRC Chairman and CEO Bill Zollars said in the filing that the economy “remains very weak” and shows “no significant signs of near-term improvement.” YRC saw accelerated volume declines across its business units throughout the first quarter, “primarily a function of the economy and its impact on our customers.”

YRC said in the SEC filing that it expects to record first-quarter charges of $161 million to $185 million related to integrating its Yellow Transportation and Roadway units and other actions. The charges are to include $50 million to $55 million for the integration of the Yellow and Roadway units; $25 million to $30 million for severance; $28 million to $30 million for union employee stock awards; $8 million to $10 million for USF Holland “footprint adjustments;” and $50 million to $60 million for reserve accruals/pension settlement.

YRC is eliminating about 600 non-union jobs by the end of April following the integration of two subsidiaries and due to the harsh economy. During the past year, the company laid off 50 workers in St. Louis and 150 in Edwardsville, Ill.


Speeding in Reverse

The Journal of Commerce Magazine - News Story
New downsizing at FedEx Freight, YRC as demand dives and shipper pricing power grows

Less-than-truckload carriers are seeing demand leave the market faster than they can withdraw capacity, and they are trying to catch up.

FedEx Freight and YRC Worldwide, two of the largest players in the LTL business, said they are making new cutbacks amid signs that the long-struggling domestic trucking market is in full retreat.

YRC said it will extend the consolidation it is undertaking at its national network business to its regional LTL operation by April 6. YRC will close 11 terminals at USF Holland, a unit hit hard by the decline in automobile and other manufacturing in the industrial Midwest, and will have the sites served by another subsidiary, New Penn.

That announcement came as FedEx Freight, which posted double-digit growth as recently as the last fiscal year, announced an operating loss of $59 million in its fiscal third quarter, which ended on Feb. 28. Revenue fell 20.9 percent on a 13 percent drop in average daily shipment count.

The LTL freight division at FedEx said it will extend its cuts in capacity, jobs and employee pay.

The new cutbacks at FedEx and YRC suggest that diminishing freight demand and growing shipper pricing power are taking a toll on carrier operations.

“We believe USF Holland’s terminal closures and FedEx Freight’s (quarterly) results highlight a very challenging LTL marketplace,” said Justin Yagerman of Wachovia Securities. “Unfortunately for the industry, we view these terminal closings as a rationalization of underutilized capacity, and not as an opportunity for freight to be redistributed to the industry.”

USF Holland, based in Holland, Mich., will shut down terminals in Richmond, Va.; Wichita, Kan.; Albany and Syracuse, N.Y.; Allentown, Bedford, DuBois, Harrisburg, Wilkes-Barre and Philadelphia, Pa.; and Baltimore.

Regional LTL New Penn and YRC, the newly branded long-haul network, will start making Holland’s deliveries on April 6. Holland will continue making pickups at the 11 affected locations through April 2, YRC said.

YRC expects to get $25 million to $30 million in annual savings at the regional division, while incurring $8 million to $10 million of one-time shutdown costs.
FedEx Freight’s loss “reflects the extraordinary decline in demand for freight services, the continued competitive pricing environment, costs related to the consolidation of our freight regional offices and severance charges from personnel reductions,” the company said. Yield declined 7 percent because of lower fuel surcharges and tougher pricing competition.

Terminal reductions and falling yield “mean prices are still falling,” said Charles W. Cloudis, managing director of North American markets for IHS Global Insight. “Trucks are running half full, and while carriers are saying they’re providing the same service, they’re not. They have to wait for trucks to have full shipments because they don’t want to spend the same line-haul cost per mile running a half a load.

“That means customers don’t get their Wednesday shipment until Thursday. Everyone’s doing the same thing, so you’re seeing customers’ safety stock dwindling down to nothing.”

YRC could be on the verge of gaining back lost system density — and lost customers — with headway made in its long-haul division. The official merger of its former Yellow Transportation and Roadway operations took place on March 1. YRC President Michael Smid said after a bumpy two weeks the network is winning back freight.

“I’m sure shippers at any given time may have moved portions of their freight to other carriers,” Smid said. “But we have seen a substantial portion of that return, and as we pass through this third week (of the integration), we expect to get back more.”

During the first few days of the cut-over, the company was answering more than 50,000 calls per day from customers as dock workers got used to the new computer system. Average wait time for customer service calls is now down to less than 40 seconds, and pickup and rate quote calls are down to less than 10 seconds.

In addition, special guaranteed shipments are running at a 98 to 99 percent on-time performance level, with standard service at 95 percent, Smid said.

Contact John Gallagher at jgallagher@joc.com.


The U.S. Equal Employment Opportunity Commission




ST. LOUIS – YRC Inc. (“YRC”), and the U.S. Equal Employment Opportunity Commission (“EEOC”) today announced an agreement providing for an expanded recruitment program that both the federal agency and America’s largest over-the-road trucking company expect will increase the diversity of YRC’s truck driving and dock employees’ workforce.

The agreement focuses on continuing and expanding YRC’s existing diversity efforts and hiring programs for women and minorities. In particular, YRC has agreed to:

  • Expand its sponsorship of Women in Trucking, an organization established to encourage the employment of women in the trucking industry;
  • Continue its “Diversity Days” initiative, an innovative program bringing together community and good faith placement agencies and human resources personnel to promote minority hiring;
  • Enhance YRC’s recruiting efforts generally through a variety of measures to increase community awareness of opportunities at YRC for women, African Americans and Hispanics;
  • Provide new training to its managers designed to identify and remove unintentional yet significant barriers to hiring women and minorities into dockworker and driver positions; and
  • Improve the work environment for women and minorities at YRC facilities.

James G. Kissinger, Executive Vice President of Human Resources for YRC’s parent company, YRC Inc., said, "YRC is pleased that we were able to work collaboratively with the EEOC. Everyone recognized that certain structural and perceptual barriers still exist to hiring in the trucking industry, particularly for women. We have achieved an outcome that will lead to a more diverse applicant pool and ultimately a more diverse workforce once the current economic downturn is over and hiring resumes in earnest. Working with community agencies and organizations such as Woman in Trucking, YRC has implemented and will continue to implement better recruiting and hiring practices."

The agreement, voluntarily entered into by YRC without admitting liability or wrongdoing, ended an investigation by the EEOC into YRC’s hiring practices with respect to women, African Americans, and Hispanics into truck driving and dock worker positions. The investigation was concluded without a finding that YRC violated Title VII.

James R. Neely, Jr., Director of the EEOC's St. Louis District Office, which led the efforts to reach this agreement, said, "YRC worked cooperatively with the EEOC to resolve our concerns regarding the opportunities present for women and minorities in these positions. Working with the agency, YRC proactively designed improvements that will hopefully serve as 'best practices' models for others in the trucking industry."

YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, Reimer Express, YRC Logistics, New Penn, Holland, Reddaway and Glen Moore. Building on the strength of its heritage brands, Yellow Transportation and Roadway, the enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 55,000 people.

The EEOC is responsible for enforcing federal laws prohibiting employment discrimination based on disability, race, color, gender (including sexual harassment and pregnancy), religion, national origin, age, and retaliation. Further information about the EEOC is available on its web site at www.eeoc.gov.

This page was last modified on March 12, 2009.

Published on Teamsters for a Democratic Union (http://tdu.org)

Change Costs YRC Teamsters $10 Million

Created 2009-03-11 19:57

March 11, 2009: A change in the YRCW concession deal has just cost Teamster members $9.91 million. But it was agreed to by the International Union without so much as a whimper, let alone any vote of the affected Teamsters.

A March 4 amendment to the stock option deal has changed the date for setting the stock option price to February 12, 2009. In the memo from the International Union announcing this new deal, there is not one word of the $10 million cost to members.

The price then was $3.74, which is $.87 higher than it was on January 1, the effective date used for the wage cuts. Since that $.87 applies to 11.4 million shares in the option plan, the total difference is $9.91 million.

Assuming that the stock options end up being worth something (and we all hope they will), it will be about $10 million less than if the January 1 effective date had been used.

YRC Worldwide stock jumps on expectation of improved second quarter

Kansas City Business Journal

YRC Worldwide Inc. expects significant improvement in the second quarter as internal cost-saving initiatives, such as the integration of two subsidiaries, take effect.Integrating Yellow Transportation and Roadway is expected to mean about 1,000 more job cuts in the second and third quarters.

Bill Zollars, CEO of the Overland Park-based trucking company (Nasdaq: YRCW), presented the information at a JPMorgan Aviation and Transportation Conference on Wednesday. YRC’s stock closed on Wednesday at $2.89, up 89 cents, or 44.5 percent, on volume of 3.4 million shares, according to Yahoo Finance. The stock’s average daily volume the past three months is 2.1 million shares.

At the end of 2008, Yellow and Roadway had 521 facilities, 37,000 employees and 16,700 trucks. Around the March 1 integration, about 2,000 employees and 70 facilities were cut. By the end of the year, the combined unit is expected to have 430 facilities, 34,000 employees and 14,000 trucks.

YRC also countered what it described as concerns about employee morale from “questionable sources.” Voluntary turnover by nonunion employees dropped to 1.2 percent in the first quarter of 2009, compared with 2.2 percent in the first quarter of 2008. An anonymous nonunion employee survey from Feb. 17 showed nearly 60 percent of employees were more optimistic than last year and about 75 percent think the CEO is improving the company.

Zollars pointed out that union employees, who represent about 70 percent of the company’s work force, had approved pay cuts by a 77 percent margin.

This year, YRC expects an additional $100 million in proceeds from excess property, as well as significant sale-leaseback deals, including more than $270 million finalized or under contract, the presentation said.

Without economic recovery, the company expects to save $500 million going into 2010 from the integration and from union and nonunion pay cuts, traded for ownership stakes in the company.

However, YRC didn’t give any indication that the long-struggling freight industry was recovering and said its first-quarter results would be disappointing. The economy shows no significant signs of imminent improvement, and volume drops have sped up throughout YRC business units as the economy hits customers. Some volume decreases have come from YRC’s efforts to shed less profitable customers.

YRC ranks No. 2 on the Kansas City Business Journal’s list of area public companies.



Overland Park's YRC Makes Moody's Bottom Rung List

Web Producer Rebecca Sapakie

March 10, 2009


Overland Park-based YRC Worldwide has made Moody's Bottom Rung list. The list contains 283 companies most likely to default on their debts.

Companies from Chrysler to Rite Aid are listed. Moody's told Reuters, "about 45 percent of companies on the list will default on debt in the next year which could include anything from filing for bankruptcy to missing debt payments."

The Wall Street Journal writes, "The dominant industries on this at-risk list include much of the U.S. auto industry, the casino sector, and many retail chains, newspapers and broadcast-TV and radio-station networks. Energy firms, airlines and restaurant chains appear often."

Last year, Moody's Bottom Rung list had 157 companies, according to ZDnet.

YRC's stock opened at $1.88 on Tuesday. The trucking company has been issuing layoffs, and cutting employee compensation to save money.

Moody's lists the probability of default rating for YRC as Ca. The corporate family rating is listed as Caa3. Both are at the low end of Moody's rating system.

The Moody's rating system is from excellent to poor: AAA, Aa1, Aa2, Aa3, A1, A2, A3, Baa1, Baa2, Baa3, Ba1, Ba2, Ba3, B1, B2, B3, Caa1, Caa2, Caa3, Ca, C.


YRC completes Yellow Transportation, Roadway integration

Kansas City Business Journal

YRC Worldwide Inc. on Sunday completed the integration of its Yellow Transportation and Roadway subsidiaries, a move expected to save the company $200 million this year.The Overland Park-based trucking company (Nasdaq: YRCW) on Monday said it had eliminated the two divisions, having fully combined both networks into a single network with one management structure and set of routes. The company now estimates that the units’ 37,000-person work force will be cut by roughly 2,000 workers, or about 5.4 percent, the company said Tuesday. Estimates in the fall predicted about a 15 percent cut to the units’ work force from volume declines and the integration.

YRC’s stock closed on Tuesday at $1.72, down 24 cents, or 12 percent, on volume of 2.24 million shares, according to Yahoo Finance. The stock’s average daily volume the past three months is 2.23 million shares.

The layoffs are under way and will conclude in the spring, a spokeswoman said in an e-mail response. The total number of cuts has not yet been determined because most affected employees are being offered transfers to understaffed locations.

“This is a game-changing event for our company and the transportation industry,” CEO Bill Zollars said in a Monday release. “By going to market as YRC, we’re making it easier for customers to do business with the industry leader — and harder for the competition to match our network and our capabilities.”

The integrated network offers almost 450 service centers — about 100 more than either unit had individually — with 21,000 more direct service points that put YRC 20 percent closer to customers in big markets, the release said.

YRC merged the subsidiaries in October and changed their name to YRC, though they continued to operate as two separate divisions. The units in many cases were operating out of different parts of the same facility, according to a Monday filing with the Securities and Exchange Commission.

The legacy brand names will be phased out over time as equipment and sales collateral displaying the brands are replaced.

The company has been struggling under the weight of a freight recession that began in late 2006. On Jan. 29 , YRC reported a loss of $974.4 million in 2008 and a 7 percent drop in revenue compared with 2007. Last year, it cut more than 12 percent of its work force, going from 63,000 employees at the end of 2007 to about 55,000 at the end of 2008. YRC, which has about 2,000 local workers, also has implemented across-the-board compensation reductions in exchange for ownership in the company.

YRC ranks No. 2 on the Kansas City Business Journal ’s list of area public companies.

Logistics News: YRC Worldwide Continues to Struggle, but Keeps Finding Ways to Cut Costs and Raise Cash

Responses below are to the above Article from Supply Chain Digest


March 2, 2009

I was employed by Roadway Express for 34 years in management from 2/69 to 2/2002,and had very few problems with the Teamster workforce.

I considered some of them as close friends,and still do. I worked in terminals which employed as few as 5 to as many as 500 employees and always had a good working relationship with all employees.

In my long career I found that it was always that 10 to 15 percent that failed to carry their load. Managers, sales and teamsters, and I am sure it still is.

Until everyone pulls together due to the size of the company,and the condition of the economy it will fail without some quick intervention from ALL. In 2002 I discussed the combining of trailers, freight,eliminating duplicate terminals and combining the sales force with Yellow to reduce cost,and increase efficiency. It only took the company 6 years to see this.

Maybe they need to bring back some of the older management employees that have retired. Most have been through the bad times, and know how to help the company and employees have a future.


March 1, 2009

I have worked for YRC for ten years now. I worked my way up from the dock to management. Since being a part of the management team I am shocked to see how poorly our company operates. Many of us employees were hoping to see big changes in our business dealings in 2009 due to the fact we are being forced to give the company 10% of our paychecks.

The thanks we received for the 10% charity for bad business dealings is the opportunity to buy company stock at a fixed price of $3.39. The stock closed on Friday for $2.20. The different brands of the business are still cut throating each other which baffles me. The terminal I work for just lost its biggest account to New Penn (part of the YRC family). New Penn underbid us. How does this make any sense?? The company as a whole will retain the account but will ultimately generate less revenue and net less profit.

We also have another account at the terminal I work for in which the pricing is so bad we are losing six figures a month. That is more than a million dollars a year loss just from this one account/facility. When the issue of how much money was being lost on the account is brought to anyone's attention in corporate the response is 'We don't care about the money, we need to service this client.'

Maybe it is just me, but perhaps upper management wants this company to fail.

YRC Logistics

February 27, 2009

For your Information, the Teamsters built this industry to what it is today.

While semi-educated people like some of the people who have responded have never gotten their hands dirty, they have made a good living off of our blood, sweat and tears.

For over a 100 years the Teamsters have fought for your rights, pay benefits, and your job. While you sit back and say a FEW get it.

How dare you!

We will make it. Why, because we weed out most of the lazy and sorry people that have always thought the world owes them something, and don't want to work.

Managements friends and neighbors, and golf buddies. Probably just like your sons or daughters.

Mitchell Anderson
Yellow Freight

February 26, 2009

I have been through both buyouts of roadway and holland. Both companies were doing well until struggling yellow moves in.they have dragged both companies into this pitiful situation.

I hope YRC survives because i still have my roadway pride and keep my head up everyday.

Gene Taylor

February 25, 2009

I have worked for the company for years and made good money.

And now it appears the whole world is in an economic nightmare caused by bad loans, high gas, and idiot CEOs who do not know the meaning of the word poverty.

Well these are harsh times indeed, but the problem lies in companies laying off their workers now. If you don't have job you don't need to put gas in your tank or pay your mortgage because you just don't have enough money to do it.

Well guess what when the worker goes the giant named America will fall and die from depression. Let them know to quit reducing jobs or by the time the realize the affect we will all sitting side by side in a soup kitchen contemplating if we had just kept the jobs going.

I am counting on you to let them know at the truck conference.


February 25, 2009

Yes they will make it.

I have worked for Yellow for 30 years and we have some of the best people in freight working there. We are in bad times right now but the moves that YRC is doing right now will make the company stronger and I believe our management team is the best in freight.

The people that work there care about this company. Managers and Teamsters are working side by side now to make it happen.  This is the best it has been in that regard in the 30 years I have been here. We all just get in there and get it done.

So good times are ahead and God bless America.

YRC Worldwide

February 25, 2009

As a employee, since 2004, I have seen the steady decline of Roadway, after having been taken over by Yellow. I have watched as many knowledgable, and quite capable behind the counter personnel have either taken a buyout offer, or, been escorted off the premises by security, only to be replaced with mainly incompetent children.

Then there is the fact that Yellow sales personnel under bid freight against Roadway, essentially, robbing the hand that has fed them since their takeover of Roadway.

Last, but by no means less important, is the dribble that you hear from morons, like mr. name withheld, who can't even be a man, and give his name!

Randall Knight

February 24, 2009

I have seen some 'educated' people working as management in a teamster company. I would rather be uneducated!

Kevin Rogers

February 24, 2009

As a 31 year employee in management, no , we will not make it. I have one word that dooms us as a company: Teamster!

A few get it but they cannot carry the load for the uneducated that are not willing to go to work.

Name withheld by request

February 24, 2009

As a former employee, I hope YRC does make it, as jobs are people.

I believe the integration was inevitable but greatly accelerated when ground zero was viewed from a higher altitude. When the purchase of Roadway and USF was completed, we were told each company would carry its own brand and operate independently.

What took place for those couple years was salesperson vs. salesperson from each operating unit with pricing vs. pricing also. We would have in a sense 'mediation sessions' between company 'heads' trying to figure out if we were cutting each other or not and how to handle the situation.

I personally had competitor sales people walk in to my prospective clients location then secure business immediately simply because we were so slow in responding due to the above.

I felt that put a bull's eye on our back immediately.

Gary Woodthorpe

YRC Worldwide (YRCW) Further Enhances Financial Position by Streetinsider and yrcw slideshow

February 20, 2009 3:16 PM EST

YRC Worldwide Inc. (Nasdaq: YRCW) announced that after its recently finalized bank amendment, a positive step was taken by one of the lead credit agencies. In addition, the company finalized additional sale and financing leaseback agreements with another investor.

Earlier this week, Standard & Poor's (S&P) revised the implications of its CreditWatch review on the company to positive from developing. Given the company's new bank amendment, S&P stated it could raise the company's ratings after further evaluation.

"We appreciate S&P's initial perspective of our bank amendment and their willingness to evaluate its positive liquidity aspects," stated Tim Wicks, Executive Vice President and CFO of YRC Worldwide.

In addition, the company's operating subsidiaries signed agreements with Estes Express Lines ("Estes") to sell and simultaneously lease back certain facilities. The aggregate sale price is approximately $122 million and the property sales are intended to close from March through June 2009. The initial lease term for each facility is ten years, with two, ten-year renewal options to extend the term of each lease by up to an additional 20 years. The company will have a right of first offer if Estes decides to sell a facility during the first 36 months.

YRC to Shed More Terminals

February 6, 2009: In a conference call on February 2 with stock analysts and investors, YRCW CEO Bill Zollars stated that more terminals will be closed following the merger now in progress. "I think that the 450 [terminals] is probably not the end game,” Zollars stated. “We have plans on the books to take that down as we continue to optimize the network… It’s a big opportunity to improve efficiency but we’re not going to quit when we get to the 450.” Zollars predicted YRC will end up with about 400 terminals.

Hopefully the Teamster leadership will insist that the disruptions to Teamsters’ jobs and seniority will be minimized in the changes to come.


YRC Merger Bids to Start

Created 2009-02-02 16:21

February 2, 2009: Thousands of YRC Teamsters will soon be bidding on new jobs, with some 5000 moving to new terminals. According to a January 30 memorandum from Teamster freight director Tyson Johnson, local bidding and transfer-of-work bidding will be completed prior to February 15, and the national pool bidding will take place on February 16 (and 17 if necessary).

Click here [1] to see a copy of the bidding procedure memorandum.


YRC Merger Hearings End

Created 2009-01-30 23:18

January 30, 2009: The hearing on management’s proposed merger of Yellow and Roadway operation concluded on Thursday, as did the hearing on the “Velocity” change dealing with utility employees.

A decision is expected soon—perhaps in a week. That decision, on the job transfer and seniority details of the largest trucking merger in history, will be extensive. Most of the job transfers are going to be by the follow-the-work principle, with many Teamsters transferring to nearby gaining terminals. The national bidding pool will take care of others. Nearly 1000 Teamster jobs will be lost in the merger.

YRC hopes to conduct bids in mid-February and implement the change by March 1. That date may end up being pushed back. Teamsters who relocate in the change will be given some grace period, if they are unable to start that quickly at the new location.

The “Velocity” change of operations greatly reduced the number of utility employees, and restructured their function in a way similar to ABF: handling one- and two-day freight.


YRC Merger Hearing Continues

Created 2009-01-27 23:08

January 27, 2009: The change of operations hearing in Dallas to allocate jobs and seniority in the Yellow-Roadway merger will continue for at least a third day. It was originally scheduled for two days, but by Tuesday afternoon only the Central Region locals and half of the Eastern locals had been heard.

A lot of the time is taken up with locals contesting the company on how many workers get to follow their work. Where a terminal is losing work to a gaining terminal, that transfer of workers will occur before the overall pool bidding.

It is clear that the seniority lists will be dovetailed, including all active and laid off Teamsters, aside from a few possible exceptions including in Chicago. There will be a window period, during which time if work opens up in a gaining terminal, more workers will be afforded the right to move. There will also be a subcommittee set up to deal with mistakes made.

The decision will probably issue quickly after the hearing concludes, because YRC intends to hold bids by mid-February and implement the mega merger by March 1.

New Penn Not for Sale
John Gallagher
Associate Editor

YRC Worldwide Chairman, President and CEO William D. Zollars denied his company was ready to sell regional subsidiary New Penn.

"Rumors of a divestiture of New Penn are not true," Zollars said. "They're a valued part of our portfolio and are performing well."

Zollars wouldn't comment, however, on whether or not the Lebanon, Pa.-based company, considered by many as YRC's best run company, was able to generate a profit in the fourth quarter. "We don't get into that detail with our individual subsidiaries," Zollars said.

New Penn, which employs over 2,000 people, specializes in next-day service through 24 service centers in the Northeastern United States, Quebec, Canada and Puerto Rico. It operates a fleet of over 850 tractors and 1,700 trailers, according to the company Web site.

YRC Lost $244M in 4Q
John Gallagher
Associate Editor

YRC Worldwide lost $244 million in the fourth quarter as impairment charges, network integration issues and plummeting demand for freight transportation service ate away at the LTL giant's finances.

The loss compared to a loss of $736 million during the same period a year ago. Revenue fell 18 percent during the quarter compared with fourth quarter 2007, from $2.35 million to $1.93 million.

For the year, YRC lost $974 million, compared to a $638 million loss in 2007. Revenues dropped from $9.6 million in 2007 to $8.9 million in 2008.

Tonnage per day was down 14.6 percent in the quarter compared to same period last year at YRC National Transportation, the company's long-haul subsidiary. At YRC Regional Transportation, tonnage per day was down 14 percent when adjusting for network operation changes and down 23.6 percent without the adjustment.

YRC's dismal fourth quarter results come while the carrier is struggling to maintain its credit standing with banks and working to avoid a default on loan covenants. 

"Our results reflect the significance of the economic recession that has been longer and deeper than anyone anticipated," said YRC Chairman, President and CEO William D. Zollars. "Although we were not pleased with this level of performance, it was consistent with our internal expectations and those of our banking group. The discussions with the banks are progressing well, and we are on track to finalize an amendment by mid- February."

YRC generated $185 million in free cash flow in 2008. Total debt at December 31, 2008 increased by $127 million compared to the previous year, the company reported. Accounting for cash and cash equivalents of $325 million at the end of 2008, the company's debt decreased by $140 million.

"Even in this economic environment, we generated a significant amount of cash and we have multiple initiatives in place that can further improve liquidity," Zollars said.


YRC Worldwide (YRCW) is expected to report Q4 earnings after market close Thursday, January 29, after the market close, with a conference call scheduled for Friday, January 30 at 9:00 am ET.


Analysts are looking for EPS of (66c) on revenue of $2.04B. The consensus range is (83c)-(48c) for EPS, and revenue range of $1.78B-$2.31B, according to First Call. When the company reported its Q3 results it announced it expects net 2008 capital expenditures of $50M-$75M, and Q4 total debt reduction of at least $100M. The company's shares have plummeted -81.62% in the past 6 months. YRC Worldwide shares were trading at $20.29 on July 25, and are currently at $3.73.

Analyst Views

In early December, YRC Worldwide was upgraded to Neutral from Underweight at JP Morgan. The firm upgraded the company following the announcement that the company and the Teamsters will vote on contract modifications. YRC Worldwide was also upgraded to Market Perform from Underperform at Wachovia in early January. The firm no longer believes the risk-reward ratio of shorting the stock is compelling at current levels. The firm now sees limited downside risk in the shares.