YRC Worldwide Inc. fell more than 12 percent Friday after shipper FedEx Corp. cut quarterly and full-year profit estimates and an analyst cut earnings estimates for the trucking sector.
YRC Worldwide shares, already trading at prices not seen since August 2002, slipped from Thursday’s 52-week low of $20.01 to $17.39, the lowest price since June 2001. Shares closed Friday at $17.59, down $2.52 or 12.53 percent.
Shares of YRC Worldwide fell along with those of FedEx, which cut its second-quarter profit estimate and its estimate for the full year on rising fuel costs and lower shipping volume.
FedEx shares closed down $4.57, or 4.51 percent, at $96.80. Larger rival United Parcel Service Inc. fell $1.09, or 1.49 percent, to $72.01.
Robert W. Baird analyst Jon Langenfeld cut his earnings estimates for the trucking sector, saying current freight trends indicate the fourth quarter will be worse than expected.
Langenfeld cut his price target for YRC Worldwide shares to $22 from $28, citing an expected impact related to a Teamsters pension plan.
In an interview Friday with Dow Jones Newswires, YRC Worldwide chairman and chief executive officer Bill Zollars said his company is facing the same conditions as FedEx. He said YRC stopped giving earnings guidance around the middle of this year because of the difficulty in forecasting conditions in the market.
“We basically threw up our hands,” Zollars said