Drivers

YRC Reports 1Q Loss Despite Overhaul Efforts

May 04, 2010

SHARING TOOLS        | Print Subscribe
Despite cost cutting and financial overhaul efforts, YRC Worldwide reported a net loss of $274 million during the first quarter, compared to a similar loss during the year-ago period.
Meanwhile, the less-than-truckload carrier said operating revenue was $1.1 billion, down from $1.5 billion in the first quarter 2009.

"Despite the headwinds from the note exchange in the latter part of December and the harsh winter weather we experienced during January and February, we are pleased with the sequential operating improvement during the quarter and the traction we achieved in the month of March," said Bill Zollars, chairman, president and CEO of YRC Worldwide.

At YRC National Transportation, total shipments per day dropped 33.6 percent, with total tons per day down 34.6 percent. YRC Regional Transportation saw total shipments per day slip 12.9 percent, with total tons per day down 9.1 percent.

However, the company said volumes in both divisions have increased in April.

"We appreciate the continued confidence our customers have shown by increasing their shipments with us throughout the quarter and into April," said Zollars. "With our current operating momentum, we still believe we will generate positive adjusted EBITDA in the second quarter."

In February, YRC solidified the details of its $470 million debt-for-equity swap as well as the purchase of $70 million in new unsecured convertible notes in a private placement.

The company also laid off about 200 workers from its Overland Park headquarters and Akron, Ohio, facility over the month of February, according to published reports. In March, Zollars told analysts to expect more layoffs across the company as part of YRC's effort to save $300 million by the end of this year.


Comment On This Story

Name:  
Email:  
Comment: (Maximum 2000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

Newsletter

We offer e-newsletters that deliver targeted news and information for the entire fleet industry.

GotQuestions?

ELDs and Telematics

sponsored by
sponsor logo

Scott Sutarik from Geotab will answer your questions and challenges

View All

Sleeper Cab Power

Steve Carlson from Xantrex will answer your questions and challenges

View All