YRCW Cuts Loss, Claims 'Significant Improvement'

Trucking giant YRC Worldwide, fighting to stay out of bankruptcy, cut its net loss to $158.7 million in the third quarter but saw its volume and revenue fall sharply as shippers apparently moved business away from the carrier.

The nation's largest less-than-truckload operator, which has lost more than $2 billion over the past two years, also said its liquidity improved, claiming cash and available unused capacity under the credit facilities of $171 million at Sept. 30, 2009, including $163 million of cash and cash equivalents. Cash holdings have fallen by about half since the end of 2008.

The loss compared to a net loss $720.9 million, with special charges, a year ago.

"We gained significant momentum in the third quarter as we executed on our comprehensive plan to improve operating efficiencies, restore financial strength and position our company for future success," said Bill Zollars, chairman and CEO of YRC Worldwide.

"We achieved significant sequential improvement from the first half of the year. In fact, YRC Regional Transportation and YRC Logistics were profitable for the quarter, and our operating cash flow trends improved sequentially during the quarter despite the continued economic downturn."

Revenue declined 45 percent in the quarter compared to the same period a year ago, to $1.3 billion. Shipment volume at its national LTL business was down 39.9 percent compared to last year and the shipment count at YRC Regional Transportation declined 22.7 percent. 

Contact William B. Cassidy at wcassidy@joc.com.