YRC to take $108M 1st-quarter charge for employee stock awards, but sees better shipments

YRC to take $108 million 1Q charge

NEW YORK — Struggling trucking company YRC Worldwide Inc. said Thursday it will take a noncash charge of about $108 million related to stock awards for its union employees.

But the company said that it is still seeing “momentum” in its business and expects to report positive earnings before interest, taxes, depreciation and amortization starting in the second quarter. The equity awards were part of an agreement with union workers to reduce their pay when the trucker was desperate to cut costs in the recession.

The company, based in Overland Park, Kan., said its shipments at its national and regional units improved last month after being hampered by harsh winter weather in the first two months of the year. The first two months of the year are usually the weakest for trucking companies.

At its national unit, YRC said total shipments per workday improved to 44,900 in March from 41,900 in February. YRC’s regional unit saw total shipments per day of 35,300 last month compared with 32,000 the month before.

YRC shares rose 5 cents, or 8.2 percent, to 62 cents in early trading.