Roadway parent company cites bad weather, slowdown
YRC Worldwide Inc., the largest U.S. trucking company and parent of Roadway Express of Akron, said Thursday that first-quarter profit plunged 97 percent because of bad weather, a slowing economy and reorganization costs.
Net income was $1.3 million, or 2 cents a share, compared with $42.1 million, or 71 cents, a year earlier, the Overland Park, Kan.-based company said in a statement. YRC also cut its full-year profit forecast.
Bad weather dampened earnings by 17 cents a share, YRC said, as the carrier also battled excess trucking industry capacity and price competition spurred by a slowdown in U.S. growth.
``Our results were impacted by a weaker economy and extremely difficult operating conditions during the first quarter,'' Chief Executive Officer William Zollars said in the statement. Sales declined 1.9 percent to $2.3 billion.
The profit fell short of analysts' expectations of 40 cents a share, the average of 12 estimates compiled by Bloomberg.
For all of 2007, YRC lowered its per-share earnings forecast to a range of $4 to $4.20 on an estimated $10.2 billion in revenue, compared with its Feb. 1 projection of $4.70 to $4.90.
Shares of YRC rose 31 cents to $45.74 at 4 p.m. New York time in Nasdaq Stock Market composite trading before the company reported its earnings.
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