Monday, June 16, 2008

YRC Worldwide upgraded

A JPMorgan analyst says cost reductions should allow trucking company YRC Worldwide Inc. to surpass Wall Street's expectations, and he upgraded the stock to "Neutral" from "Underweight."

Thomas Wadewitz said YRC appears on track with its cost cuts, and because expectations are low, the stock could get a boost if it reaches its forecast of 30 to 40 cents per share in profit. Wadewitz now expects the Overland Park, Kan., company to earn 30 cents per share for the quarter, up from 25 cents.

On average, analysts reporting to Thomson Financial expect a profit of 28 cents per share. Wadewitz said challenges from weak demand and high fuel costs remain.

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