YRC to Report ‘Slight Loss’ in 3Q Core Operations
YRC Worldwide said Monday that while it expects to report a “solid profit in the third quarter,” it will post a “slight loss” in its core operations due to ongoing economic weakness, and will step up the integration of its two main trucking units.
YRC said its earnings will include a “curtailment gain” of about 70 cents a share related to its retirement plans for its nonunion employees and will incur reorganization costs of 6 to 8 cents per share related to employee severance.
The less-than-truckload carrier also said that it was boosting the integration of its Yellow Transportation and Roadway subsidiaries, “taking steps to bring together the local sales teams and offer a comprehensive portfolio of services through one operating network.”
The two brands will remain in the marketplace represented by a combined sales force of more than 1,000 account executives. The ongoing integration will occur in phases and s expected to extend through 2009 with an annual operating income improvement in excess of $200 million, YRC said in a statement.
“Given the positive customer response from our recent combination of the corporate sales teams and the increasingly dynamic operating environment, we believe now is the right time to take such significant action,” said Bill Zollars, YRC’s chairman and chief executive officer.
“The economic downturn has created the capacity in our networks needed to effectively integrate our operations, while improving service reliability and speed. By offering a comprehensive service portfolio through one unified network, we can more effectively serve our customers and simplify their experience.”
YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
