YRC Loses $309 Million

YRC Worldwide, the country’s largest less-than-truckload carrier, lost $309 million in the quarter ending June 30 as shippers apparently abandoned the troubled company in large numbers, sending revenue down 45 percent.

The company, which has struck deals in recent weeks with its lenders and the Teamsters union to reduce its costs and debt troubles, saw shipping at its national LTL business fall more than 37 percent and tonnage per day at its regional unit decline 26.4 percent compared to the last year’s second quarter.

The loss included a series of one-time charges. Without those, YRC said it lost $255 million in the quarter compared to a $35.8 million profit a year ago.

Despite a loss that far exceeded Wall Street projections, YRC Chairman, President and CEO Bill Zollars said it was on track on a “comprehensive plan to realize efficiencies from the YRC integration, restore financial strength and position our operating companies for future success.”

"Although misinformation about our financial stability creates noise in the marketplace, many of our key customers stand firmly behind our plans and show their support with their business every day,” Zollars said. “We believe that as we continue to make significant progress on our plans, the tremendous support of our employees, lenders and other stakeholders can provide all of our customers with the confidence they need to completely return."

YRC cut some $700 million from its operating expenses compared to last year’s second quarter, but its cash holdings fell by half from the end of 2008, to $164.5 million.

Overall revenue fell by nearly $1 billion, to $1.3 billion.