YRC, Arkansas Best chiefs say economy has bottomed out. Oil still 'wild card'
YRC Worldwide Inc.'s chief executive officer said the U.S. economy ''has stabilized'' and Arkansas Best Corp.'s CEO said the ''longest'' freight recession isn't worsening, as the trucking companies contend with reduced demand.
The remaining ''wild card'' is the price of oil, which is straining customers, YRC's Bill Zollars said Wednesday at a Merrill Lynch & Co. conference in New York. Crude oil has surged 40 percent in New York trading this year.
''This has not been the worst recession I've seen in my 36 years, but I think it's been the longest,'' Arkansas Best's Robert Davidson said at the same conference. ''It's not getting any worse, but it's not getting any better.''
YRC, the biggest U.S. trucking company which has Roadway operations based in Akron, and competitors such as Arkansas Best that carry freight from more than one customer in each trailer have struggled because of a drop in demand for freight hauling that began in October 2006. Full Story........
Thursday, June 19, 2008
Wednesday, June 18, 2008
YRC Worldwide Updates Q2 Guidance
YRC Worldwide Inc. has updated second quarter 2008 earnings guidance to a range of $.55 to $.65 per share, which now includes net curtailment gains of $.34 per share and an accident charge of $.09 per share.
The company said that, excluding the curtailment gains and the accident charge, its second quarter 2008 earnings from core operations are expected to be consistent with previously issued guidance of $.30 to $.40 per share.
YRC said that the net curtailment gains relate to changes in certain retirement plans as the company continues its progress toward a common employee benefits platform across its multiple operating units.
The company said that, excluding the curtailment gains and the accident charge, its second quarter 2008 earnings from core operations are expected to be consistent with previously issued guidance of $.30 to $.40 per share.
YRC said that the net curtailment gains relate to changes in certain retirement plans as the company continues its progress toward a common employee benefits platform across its multiple operating units.
Fuel prices, weak economy, hefty charge to take center-stage in FedEx's Q4 results
Skyrocketing fuel prices, weak economy, and lower demand for freight amid declining U.S. homebuilding and industrial production, together with a hefty charge on FedEx Kinko's name change, are taking their toll on package delivery giant FedEx Corp., which sees a significant fall in its fourth-quarter results. The company is expected to announce the results before the market opens on Wednesday.
However, in the long run, high oil prices are expected to benefit FedEx, as an upcoming boom for Internet shopping to save driving is likely to result in FedEx lifting prices and return to growing profits.
The results of Memphis, Tennessee-based FedEx, a Dow component, will be closely watched by Wall Street, as FedEx and its main U.S. competitor United Parcel Service Inc. are seen as bellwethers of the U.S. economy, since package volumes would be impacted when there is a rise or fall in economic growth. A drop-off in demand for delivery services could point to weakness in many other businesses.
Atlanta, Georgia-based UPS, which is likely to release its second-quarter results in late July, is also expecting poor earnings, saying that it sees no signs of economic strengthening in the quarter. Full Story.......
However, in the long run, high oil prices are expected to benefit FedEx, as an upcoming boom for Internet shopping to save driving is likely to result in FedEx lifting prices and return to growing profits.
The results of Memphis, Tennessee-based FedEx, a Dow component, will be closely watched by Wall Street, as FedEx and its main U.S. competitor United Parcel Service Inc. are seen as bellwethers of the U.S. economy, since package volumes would be impacted when there is a rise or fall in economic growth. A drop-off in demand for delivery services could point to weakness in many other businesses.
Atlanta, Georgia-based UPS, which is likely to release its second-quarter results in late July, is also expecting poor earnings, saying that it sees no signs of economic strengthening in the quarter. Full Story.......
Tuesday, June 17, 2008
Calling on All Teamsters to Lend a Hand to the Midwest Flood Victims
Your Teamster brothers and sisters affected by the flooding in the Midwest need your help. Thousands of them have lost their homes and many local unions have been destroyed or remain shut down.
We cannot forget them. We pledged as Teamsters to stand together and united, we can make a difference for the flood victims. We can help by sending monetary donations to the Teamsters Disaster Relief Fund. Any amount will be helpful.
Donation checks may be sent to:
Disaster Relief Fund
c/o International Brotherhood of Teamsters
25 Louisiana Ave. NW
Washington, D.C. 20001
Download the flier to share with friends and coworkers.
We cannot forget them. We pledged as Teamsters to stand together and united, we can make a difference for the flood victims. We can help by sending monetary donations to the Teamsters Disaster Relief Fund. Any amount will be helpful.
Donation checks may be sent to:
Disaster Relief Fund
c/o International Brotherhood of Teamsters
25 Louisiana Ave. NW
Washington, D.C. 20001
Download the flier to share with friends and coworkers.
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.
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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