YRC Worldwide reports $95.4M 4Q operating loss as shipments plunge 40 percent

YRC Worldwide reports $95.4M operating loss in 4Q

NEW YORK — YRC Worldwide, one of the country’s largest trucking companies, said Friday the weak economy and internal financial struggles gave it an operating loss in the fourth-quarter.

But the company, which some analysts thought was close to bankruptcy protection late last year, said it sees “good momentum” in its business so far this year. YRC said it’s getting support from some big customers who have stuck with it; including Toys R Us, Dole, Neiman Marcus and Anheuser-Busch.

CEO Bill Zollars said other customers were scared off by concerns about the company’s finances. Zollars said YRC is not trying to lure customers back by cutting prices. But competitors like FedEx and Con-way have been undercutting the company’s rates. Freight shipments are a large expense for retailers and manufacturers, so the cost of everyday goods can be impacted by trucking rates.

Trucking companies are indicators of the health of the broader economy because they carry so many everyday goods, from refrigerators to TVs.

YRC managed a successful debt-for-equity swap at the end of the year, which virtually wiped out shareholders to satisfy creditors.

The company had just $98 million in cash as of Dec. 31 and more than $1.07 billion in liabilities. YRC has access to $160 million from a credit line, and expects to get more cash when the debt swap closes this quarter.

The company was pummeled last year by the combination of the sluggish economy and slow integration of two of its businesses. It cut thousands of jobs, reduced pay for remaining employees and sold real estate to raise cash.

YRC, which operates trucks under the Yellow, Roadway, Holland and New Penn names, reported an operating loss of $95.4 million in the fourth quarter, compared with a year-ago operating loss of $335.3 million.

YRC, based in Overland Park, Kan., did not provide net income or per-share figures, saying it was still working on its income-tax provision.

Revenue plunged to $1.15 billion from $1.93 billion a year earlier. Analysts polled by Thomson Reuters predicted sales of $1.22 billion.

Average shipments per day fell 40 percent in the company’s national freight segment.