An industry analyst is raising strong doubts about whether trucking company YRC Worldwide Inc. will be able to avoid bankruptcy, even with the latest labor contract concessions from its 35,000 Teamsters employees.''Bankruptcy, in our view, is not imminent, but we do believe it is becoming increasingly likely,'' wrote transportation analyst David Ross of Baltimore-based Stifel Nicolaus. Other industry analysts have also said YRC could file for bankruptcy.
In the report issued Wednesday, Ross downgraded YRC shares from ''hold'' to ''sell,'' saying company stock is basically worthless. It is likely that the first quarter of 2010 — typically the industry's weakest time of the year — will be the company's last, he said.
Company employees now own ''35 percent of zero,'' Ross said in an interview.
Shares of YRC on Wednesday fell 25 cents to $2.05. Shares are down 28.6 percent since Jan. 1 and are down 89.5 percent from a year ago.
YRC executives have been saying that they are cutting costs and making other changes to improve company finances. Chief Executive Officer Bill Zollars called the Teamsters vote on the latest concessions ''game changing.''
The company issued a statement Wednesday in response to the analyst report:
''YRC Worldwide continues to report significant progress on its comprehensive plan to manage through the economic recession. Through the ongoing support of its key stakeholders including its lender group, union and non-union employees and pension funds, the company is moving forward with its strategic plans to restore financial strength and position its operating companies for future success.
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4 comments:
Bankruptcy is the best thing that can happen to us. They are wanting to yell about New Penn being on the NTFA instead of white paper deal now. So I think their votes from the first cut and this cut ought to be counted in with ours & maybe we wouldn't have to take one. I'm sorry but to pay $800 a month to work for a company that can't even pay your retirement & they have already canceled your life insurance too. There are no other companies complaining about being in this bad a shape. Why are the teamsters not releasing the ballot count by locals. They did last time, are they hiding something this time.
I just checked it out, they HAVE NOT CANCELLED OUR LIFE INSURANCE...
It would be nice if you guys would get your facts right, before posting...
NO ONE LIKES THE PAY CUTS, not even me.... BUT, check out your facts....
I predict yrcw worldwide will be no more by years end or the beginning of 2010 at the latest. I've been rumors of them doing this and of then doing that. fedex is now putting a hurt on us. Look at the stock market. We are on life support. Deja'vu. This is CF all over again.
There would only be one reason as to YRC going out of business. That reason would be the Central States Pension Fund. The Fund has been in a "RED ZONE" for many years already, due to total mismanagement. Consolidated Freightways went out of business for the exact same reason. To get the Central States Pension Fund Contributions Eliminated. The PROOF?? Conway Central, Southern, Western and Eastern Express. The little Sister to Consolidated Freightways. YRC is going to do the exact same thing and leave the PENSION Members holding onto their current Contributory years and taking a beating on trying to retire before turning 65. The new rules were just explained to the Milwaukee Drivers through a meeting with the Funds representatives. Fred Gegare, the Funds Chairman, was not at the meeting due to his outlandish quest to run for the office of President of the International Brotherhood of Teamsters. I give Fred credit for having a lot of balls. It is just a shame, that no matter what this guy touches, it turns to shit.
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