Thursday, April 24, 2008

YRC Worldwide posts wider-than-expected 1Q loss

YRC Worldwide Inc., one of the nation's largest trucking companies, said Thursday it swung to a loss in the first quarter much wider than Wall Street was expecting, hurt by a weak freight environment and charges stemming from a massive reorganization.

The company swung to a loss of $45.9 million, or 81 cents per share, compared with a year-ago profit of $1.3 million, or 2 cents per share.

Results included 13 cents-per-share in charges related to service-center closures at its USF Holland and USF Reddaway units and 11 cents per share for insurance claim adjustments.

Revenue slipped 4 percent to $2.23 billion, from $2.33 billion a year earlier.

Analysts were expecting a loss of 25 cents per share, with revenue of $2.26 billion, according to a poll by Thomson Financial. Analyst estimates typically exclude one-time items.

The weak U.S. economy, severe winter weather and soaring fuel prices continued to bash earnings in the first quarter, the company said.

However, the company said it expects to meet Wall Street's expectations in the second quarter as cost cuts and other operational improvements begin to take hold.

Shares fell 21 cents to $12.75 in aftermarket trading. The stock closed up 78 cents, or 6.4 percent, to $12.96 in the regular session.

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