Saturday, April 30, 2011


Hoffa Hails Today’s News, Vows Continued Effort To Keep Members Working

The restructuring plan to protect 25,000 Teamster freight jobs at YRC Worldwide, Inc. has cleared an important hurdle and remains on track to be completed in July, Teamsters General President Jim Hoffa announced today.

The Teamsters National Freight Industry Negotiating Committee, along with lenders and the Teamster multi-employer pension funds, has entered into definitive agreements to move forward with the planned restructuring of YRCW. With the support of more than 95 percent of the senior secured lenders, 100 percent of the pension funds and 100 percent of the existing ABS lenders, this vote clears the way in moving the restructuring forward to close as planned in July.

”Saving the jobs of our 25,000 freight members at YRCW remains our number one priority so we welcome this news today,” Hoffa said. “These agreements and the support of the company’s primary stakeholders represent a significant step forward in the company’s restructuring plan and help to assure the continued momentum of the transaction. We will continue to be involved every step of the way to make sure this plan is completed and our members continue behind the wheels and on the docks.”

Following an extensive diligence review by independent financial advisors and attorneys and negotiations among the company’s various stakeholders, these agreements provide the details of the restructuring plan set forth in the Agreement in Principle that was announced February 28. TNFINC’s goal for the AIP was to achieve the best benefits and terms possible for Teamster YRCW members.

As previously stated in the Teamster’s February 28 press release, the restructuring will help address key provisions of the TNFINC Restructuring Plan/MOU by providing significant liquidity to YRCW, including $100 million of new capital and increased liquidity from a new asset-based loan facility. Additionally, the restructuring will reduce company debt to help pave the way for a healthier YRCW going forward.

Pending the union’s continued review and support of negotiations and documentation going forward, the transaction is on track to close no later than July 22, as previously announced.

“We are pleased that we have cleared another hurdle in our fight to protect our members’ jobs,” said Tyson Johnson, Director of the Teamsters National Freight Division and International Vice President. “General President Hoffa and I will continue to work with all the local unions and all our freight members to get through this difficult period.”

Monday, April 25, 2011

Arkansas Best Corporation Announces First Quarter 2011 Results

Arkansas Best Corporation today announced a first quarter 2011 net loss of $12.8 million, or $0.51 per share, compared to a net loss of $21.4 million, or $0.85 per share in the first quarter of 2010.

Arkansas Best's first quarter 2011 results reflect continued improvements in broader economic and LTL market conditions that provided ABF the opportunity for growth in its daily tonnage levels. While ABF was successful in adding business and improving its operating results in the first quarter, the improvements were not enough to return ABF to profitability. ABF's results for the first quarter were impacted by the lingering effects of a weaker, recessionary pricing environment. ABF's first quarter was also impacted by severe weather effects in January and early February as well as a significant increase in fuel costs that predominantly occurred during the last six weeks of the quarter. Fuel surcharge caps and non-standard fuel surcharge programs played a greater role in ABF's quarterly results than in past periods of significant fuel price increases. During March, and into the month of April, ABF has taken additional actions to increase pricing on underperforming accounts and to correct inadequate fuel surcharge programs.

"With the upturn in the economy and significantly less capacity serving the industry, the opportunities for ABF to grow profitably this year are favorable," said Judy R. McReynolds, Arkansas Best President and Chief Executive Officer. "Shippers are becoming more concerned about having transportation capacity to deliver their products. In this environment, shippers look to carriers like ABF who offer reliability, safety and a high level of customer service. ABF's reputation for dependability and consistency is valued in the transportation marketplace and is an advantage in seeking to gain additional, profitable business during this period of economic improvement."

Sunday, April 24, 2011

YRC Worldwide says it has made progress on restructuring plan

Trucking company YRC Worldwide Inc. said Friday that it has made "significant progress" in negotiating agreements with lenders, its pension fund and the Teamsters union that are necessary to restructure its balance sheet by the end of July.

"We have been working closely with JP Morgan, agent for the senior secured lender group, the steering committee, the company's pension funds and the Teamsters National Freight Industry Negotiating Committee," said John Lamar, YRC's chief restructuring officer, in a statement. "We are very pleased with the progress that has been made and the support we have received."

YRC has teetered near bankruptcy after amassing huge debts and struggling with a downturn in the trucking industry during the recession. The company cut wages, sold real estate and delayed debt payments to avoid bankruptcy and in February reached a restructuring deal with its creditors and the Teamsters union that would give lenders the bulk of new shares and convertible debt.

Teamsters president Jim Hoffa said at the time that the agreement would save 25,000 jobs, give the union two seats on YRC's board and keep the company in business.

ABF Earns Second Consecutive National LTL Carrier of the Year Award

For the second consecutive year, ABF has been named National LTL Carrier of the Year by the National Shippers Strategic Transportation Council (NASSTRAC). The company was recognized during the NASSTRAC Conference and Expo in Orlando, Florida, April 17-20.

“ABF is proud to again earn this prestigious award, which recognizes all ABF employees whose dedication to safety, cargo handling and customer service inspires confidence among customers throughout North America,” said ABF Senior Vice President Roy Slagle. “ABF people have earned a reputation as the safest, most conscientious, highly innovative members of our industry, and it is gratifying to have their efforts recognized as exemplary by NASSTRAC.”

On hand to accept the award was Judy R. McReynolds, president & chief executive of ABF’s parent company, Arkansas Best. “Being named the 2011 National LTL Carrier of the Year is indeed an honor. Recognition from NASSTRAC is particularly rewarding since this council represents the heart and soul of the transportation industry through advocacy and education for both shippers and carriers,” Ms. McReynolds said.

NASSTRAC recognizes transportation providers on a quantitative scale in five key areas: 1) customer service; 2) operational excellence; 3) pricing; 4) business relationship; and 5) leadership and technology.
“NASSTRAC encourages high performance by carriers through this shipper-based recognition program,” said Joe Estrella, director of transportation and logistics network for CVS/Caremark and NASSTRAC’s current president. “NASSTRAC leverages this annual awards program to continually encourage performance excellence in various market segments of transportation. Carriers and shippers alike perceive this to be a very credible program through which appropriate industry recognition is given.”

The NASSTRAC Carrier of the Year program is co-sponsored by Logistics Management, a leading trade magazine for buyers of logistics services.