Thursday, July 30, 2009

Another big loss for YRC

YRC Worldwide Inc., the struggling Overland Park trucking company, posted another big loss in the second quarter amid plunging revenues.

Including special charges, YRC lost $309 million, or $5.20 a share for the three months ended June 30. Excluding charges related to reducing and merging trucking operations, the loss was $3.53 a share.

Revenues plummeted 45 percent for the quarter to $1.33 billion, compared to $2.40 billion in the same quarter last year. Quarterly revenues had fallen 33 percent in the first quarter. The results were much worse than forecast by analysts, who on the average expected a $1.71 per share loss.

Shares in YRC closed at $1.69, up 3 cents. The earnings were released after the closing bell on Wall Street.

"The second quarter was focused on executing our comprehensive plan to realize efficiencies from the YRC integration, restore financial strength and position our operating companies for future success," said YRC chairman and CEO Bill Zollars in a statement.

YRC lost $257 million in the first quarter and accumulated $1.6 billion in losses in 2008 and 2007.

Many analysts have speculated whether YRC can survive the economic downturn without filing for bankruptcy. The company's future may hinge on whether its union drivers and dock workers accept more compensation cuts that could save the company $825 million through 2010.

Voting on those concessions will conclude next week.

In addition, YRC said its lending group today agreed to eliminate operating earnings requirements for the third quarter. The banks now will require the company to post operating earnings of $15 million and $20 million for the fourth quarter and 2010 first quarter, respectively.

The company had $164.5 million in cash and cash equivalents on June 30, compared to $325.3 million at the start of the quarter.

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