YRC's Spin May Be Positive, But the Operating Numbers Are Not

Summary

YRC Worldwide, the nation's largest trucking company by volume, reported a $158.7 million loss in the third quarter on sharply declining revenue of $1.3 billion, compared with a net loss of $720 million on $2.38 billion revenue in the year-ago quarter. Despite the huge losses, YRC Chairman and CEO Bill Zollars says the company "gained significant momentum" in the third quarter and some progress in new credit agreements with its consortium of lenders.

Analysis

Despite Bill Zollars' rosy scenarios, this latest quarterly loss from YRC Worldwide is troubling, and exceeded most analysts' expectations.

The worst news first:

- YRC National's total shipments per day were off 39.9 percent, an indication that some big shippers are bolting the nation's largest trucking company in favor of UPS Freight, FedEx Freight and, to a lesser degree, Arkansas Best's ABF Freight unit.

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