North America's largest trucking company, YRC Worldwide Inc said on Wednesday it expects to take non-cash impairment charges of $700 million to $800 million before taxes in the fourth quarter to reflect the decline in the value of companies it acquired.
The impairment charges reflect current market conditions and mainly relate to the fair value of former USF Corp. companies YRC acquired in 2005.
The charges will not affect YRC's cash flow or its ability to obtain financing, the company said, and do not change YRC's outlook for its companies.
YRC said it is making progress in efforts to cut costs and improve its operations. Last month it reached a tentative agreement with the Teamsters union toward a new five-year labor contract.
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