YRC Worldwide Inc. today announced that it expects first quarter 2006 earnings per share ("EPS") to be in the range of $0.65 to $0.70. The company's previous guidance was $1.00 to $1.05 per share for the quarter. Full year 2006 EPS guidance will be updated when the company announces first quarter results in late April.
"Although our business levels remain ahead of last year, overall volumes for the quarter are projected to come in below our expectations across all of our asset-based business units," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "In addition to general competitive pressure, some of our large retail customers have made significant inventory adjustments in the quarter, which have impacted our business levels."
Cost overruns in several areas at Yellow Transportation are also negatively impacting the company's results. The change of operations at Roadway Express is going as planned and is not a contributor to the earnings update.
"Our view on the economy for 2006 has not changed, particularly based on apparent strength in the manufacturing sector. We are taking steps to adjust our cost base as necessary and address specific customer situations," stated Zollars.
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