Tags: US | Earns | YRC | Worldwide

Trucker YRC: Volume Rises But Worries Remain

Wednesday, 17 Mar 2010 04:32 PM

YRC Worldwide Inc., one of the country's largest trucking companies, said Wednesday that shipping volume is improving this month after two months of severe winter storms.

Shipments in March are above normal seasonal levels, increasing by about 10 percent compared with the month before, YRC said. The first two months of the year are usually the weakest for trucking companies.

The report comes a day after YRC said that it returned to a profit during the fourth quarter in a regulatory filing. But also underscored its precarious financial situation.

The company said it earned $119.5 million, or $1.64 per share, compare with a year-ago loss of $244.9 million, or $4.15 per share.

Revenue plunged 41 percent to $1.15 billion.

YRC, based in Overland Park, Kan., originally released fourth-quarter results on Feb. 5 but did not provide net income or per-share figures. At the time the company said it was still working out an income-tax provision tied to a debt-for equity swap that helped the trucker remain free from bankruptcy protection.

YRC, which operates trucks under Yellow, Roadway, Holland and New Penn names, was hit hard last year by the sluggish economy and a slow integration of two of its businesses. It cut thousands of jobs, slashed pay and sold real estate to raise cash.

Late Tuesday, the company reminded investors in a filing with the Securities and Exchange Commission that its recovery is ongoing.

"The uncertainty regarding the company's ability to generate sufficient cash flows and liquidity to fund operations raises substantial doubt about the company's ability to continue as a going concern," YRC said in its filing.

The first quarter, which ends this month, is the seasonally weakest for truckers. YRC said that was made worse by nasty winter storms in January and February.

The company said it will need access to more cash to fund its operations.

Lenders have been lenient with YRC over the past year, pushing off interest rate payments and making other accommodations to keep the trucker operating.

Company shares fell 0.5 cents, or 1.2 percent, to 43.9 cents Wednesday.

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