Tuesday, May 10, 2011

YRC Worldwide Launches Initiatives to Further Reduce Emissions Footprint

YRC Worldwide Inc. continues its emphasis on environmental sustainability with investments in fleet enhancements and network optimization.

This month, YRC Worldwide begins its shift to 5W full-synthetic motor oil, which will improve the miles-per-gallon efficiencies of the company's fleet and reduce waste motor oil.

"When fully implemented in 2012, this change will translate to an annual savings of approximately 100,000 gallons of fuel," says Mike Kelley, chief sustainability officer and vice president, External Affairs - YRC Worldwide. "In addition, this will reduce the waste oil we dispose of each year by approximately 28,000 fewer gallons."

The company also is adding wind skirts to its 53-foot trailers. "Mounted below the trailers' bottom rails, these skirts reduce drag, and when used in combination with fuel-efficient, low-rolling resistance tires, we are able to achieve a combined five percent savings on fuel consumption," Kelley explains. Concentrating initially on equipment in California, YRC Worldwide will extend the use of wind skirts nationwide. YRC Worldwide introduced its use of fuel-efficient tires in early 2010.

Additionally, YRC Worldwide will order an initial SmartWay™-certified power unit to use in a pilot program this summer. "We have been working with manufacturers on designs that meet the SmartWay standards. We anticipate concluding the pilot program and placing our initial order for new equipment before year end," says Kelley.

YRC Worldwide will also be hiring additional network engineers in the next few months. "Network engineers are skilled in finding ways to optimize our network to minimize empty miles and maximize trailer capacity," Kelley adds. "Our network design works in tandem with our fleet enhancements, driving further reductions in emissions."

Network engineering positions will be posted as they become available. Interested candidates can check for listings at http://www.yrcw.com/careers/. Click on the "professional" link and select "industrial engineering" to view and apply for open positions

Monday, May 09, 2011

YRC CEO,Interim CFO Likely To Step Down In July

YRC Worldwide Inc. Chief Executive William Zollars and interim Chief Financial Officer William Trubeck plan to step down around late July, when the struggling trucking company aims to complete a critical financial restructuring.

YRC didn't provide details Friday of its efforts to find successors for them, although Trubeck said in an interview that "there are wheels in motion" to do so.

Trubeck, a YRC board member since 1994, and Zollars, who is also YRC's chairman, likely won't serve on the new board of directors when it's put in place after completion of the restructuring, Trubeck said.

Zollars announced in September that he planned to retire, although he said at the time he would stay until the company's recovery plan was in place. Trubeck has been interim CFO since March, when former CFO Sheila Taylor left.

Debt-laden YRC, which is in the midst of stitching together a financial overhaul to help it stay afloat, has said little about its search for new top management. Last fall, Zollars said only that the search for his successor was focusing mainly on outside candidates. Full Story......

Teamsters, safety groups open campaign against extra-large trucks

Calling them a safety hazard to drivers on the nation’s roads, the Teamsters and several safety groups and advocates opened a campaign against the truck lobby’s plans to put extra-large rigs on U.S. roads.

Teamsters President James Hoffa, longtime safety advocate Joan Claybrook, former House Transportation Committee Chairman Jim Oberstar of Minnesota and their allies aim to stop the 97,000-pound double- and triple-tractor-trailers from roaming the highways.

Their drive is fueled by a combination of economics – the big rigs rip up roads, which are expensive to repair – and personal tragedies: Stories from relatives of dead motorists who lost loved ones in big-rig crashes. “When I look in the rear view mirror, I don’t want to see that big thing” with a tired driver “bearing down on me,” Hoffa added. Full Story..........

YRC Worldwide Achieves Continued Year-over-Year First Quarter Operating Improvement

- YRC National shipments per day up 6.3% and revenue per shipment up 3.3%
- YRC Regional shipments per day up 9.8% and revenue per shipment up 7.7%
- YRC Worldwide has engaged Morgan Stanley to arrange a $400 million Asset-Based Loan

Facility as part of its overall restructuring

YRC Worldwide Inc. reported a net loss of $102 million and $2.14 loss per share for the first quarter of 2011, which represents an improvement from the net loss of $274 million and $13.15 loss per share reported for the first quarter of 2010.

Consolidated operating revenue for the first quarter of 2011 was $1.1 billion and consolidated operating loss was $68 million. The first quarter 2011 operating revenue and operating loss were impacted by extreme winter weather and included $8 million of restructuring professional fee expenses. In addition, the company recorded a 2011 first quarter charge of $17 million to increase its self-insured claims reserve, primarily related to workers' compensation claims, which occurred during or were open and unsettled at the 2009 integration of the Yellow and Roadway network operations. As a comparison, the company reported consolidated operating revenue of $987 million for the first quarter of 2010 and an operating loss of $233 million, which included a $108 million charge for union employee equity awards, $12 million of restructuring professional fee expenses and an $11 million charge for prior years' self-insured claims.

"We are pleased with the year-over-year growth in business volumes and adjusted EBITDA improvements at YRC National and across our Regional companies," stated Bill Trubeck, Interim Executive Vice President, CFO and Treasurer of YRC Worldwide. "Our first quarter operating performance improved significantly once we moved past the severe winter weather in the first two months of the quarter. Excluding the insurance charge, we generated adjusted EBITDA in excess of $20 million for the month of March."

During the first quarter of 2011, the company reported operating cash usage from operations of $46 million primarily due to $34 million in working capital requirements. Working capital changes included a $55 million increase in receivables due to the sequential growth in operating revenues and the seasonal timing of payment for certain operating expenses. Working capital requirements and the increase in the company's cash balances described below were funded by utilizing revolver availability under the company's credit agreement with net draws of $33 million and from the increased borrowing base under the asset-backed securitization (ABS) facility, which resulted in an additional $28 million in liquidity.

At March 31, 2011, the company reported cash and cash equivalents of $157 million, unrestricted availability of $8 million and unused restricted revolver reserves of $71 million, subject to the terms of the company's credit agreement. As a comparison, at December 31, 2010, the company reported cash and cash equivalents of $143 million, unrestricted availability of $51 million and unused restricted revolver reserves of $71 million, subject to the terms of the company's credit agreement.

During the quarter, a portion of asset sale proceeds were used to repay $10 million of credit agreement borrowings which reduced the revolver capacity by $7 million and the term loan by $3 million. At March 31, 2011, the company's revolver capacity was $706 million, the term loan was $254 million and the ABS borrowing base was $218 million as compared to ABS capacity of $325 million.