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"Ahead of the Bell: YRC Worldwide to post 2Q
AP ONLINE
posted: 10 MINUTES AGONEW YORK (AP) — As YRC Worldwide Inc. readies to report second-quarter results after the market closes Thursday, analysts continue to suggest that the trucking company may file for bankruptcy.
Analysts polled by Thomson Reuters expect the Overland Park, Kan.-based company to report a second-quarter loss of $1.71 per share on $1.59 billion in revenue. That compares with a year-ago profit of $36.3 million, or 62 cents per share.
Besides battling the steep downturn in demand for freight shipments, YRC has struggled with the integration of two of its business segments.
YRC has asked its workers to take pay cuts twice. If the last round of cuts is approved next month, truck drivers, dock workers and other union employees will soon be making 15 percent less than they did a year before, and have their pension contributions frozen for 18 months.
YRC has also sold real estate — including its corporate headquarters — to cover its debt.
It's also taking advice from advisers from Tenex Capital Management, Alvarez and Marsal and Rothschild Inc. to help it address its capital structure and liquidity needs.
YRC said Rothschild has started preliminary talks with major debt holders. Tenex is advising the company, one of the nation's biggest truckers, on cost cuts and changes to streamline its operations.
Analysts say this recent round of negotiations with union workers might have given a much-needed lifeline to the trucking company, pushing off what might have been an imminent bankruptcy filing. Longbow Research analyst Lee Klaskow said he's not banking on YRC filing for bankruptcy anytime soon, but if it does, it could mean a windfall for other trucking companies in the form of more business and pricing strength."
Thats a loss of 102 million if it comes in on analyst prediction. And thats not including the months that they didnt pay for the Pension. GOOD JOB DOLLAR BILL
AP ONLINE
posted: 10 MINUTES AGONEW YORK (AP) — As YRC Worldwide Inc. readies to report second-quarter results after the market closes Thursday, analysts continue to suggest that the trucking company may file for bankruptcy.
Analysts polled by Thomson Reuters expect the Overland Park, Kan.-based company to report a second-quarter loss of $1.71 per share on $1.59 billion in revenue. That compares with a year-ago profit of $36.3 million, or 62 cents per share.
Besides battling the steep downturn in demand for freight shipments, YRC has struggled with the integration of two of its business segments.
YRC has asked its workers to take pay cuts twice. If the last round of cuts is approved next month, truck drivers, dock workers and other union employees will soon be making 15 percent less than they did a year before, and have their pension contributions frozen for 18 months.
YRC has also sold real estate — including its corporate headquarters — to cover its debt.
It's also taking advice from advisers from Tenex Capital Management, Alvarez and Marsal and Rothschild Inc. to help it address its capital structure and liquidity needs.
YRC said Rothschild has started preliminary talks with major debt holders. Tenex is advising the company, one of the nation's biggest truckers, on cost cuts and changes to streamline its operations.
Analysts say this recent round of negotiations with union workers might have given a much-needed lifeline to the trucking company, pushing off what might have been an imminent bankruptcy filing. Longbow Research analyst Lee Klaskow said he's not banking on YRC filing for bankruptcy anytime soon, but if it does, it could mean a windfall for other trucking companies in the form of more business and pricing strength."
Thats a loss of 102 million if it comes in on analyst prediction. And thats not including the months that they didnt pay for the Pension. GOOD JOB DOLLAR BILL