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ABF | What Does The YRC Talks Mean

nothumbleenough said:
Over 150 Million in losses in 2012. 54 Million in losses so far in 2013 with the 3rd Quarter being so bad they have delayed its results. Basic economics tells a rational investor the trends are not improving and the "discounting of freight" will not bring them back considering the over supply of capacity within the LTL industry.

I don't see how the banks justify extending the 1.4 Billion credit line of a company that averages over a million miles per road tractor. 10% to 12% interest being charged by traditional banks is unheard of in today's low interest environment where most businesses are charged around the prime rate which is currently 3.25%. So YRC's current interest expense is 3x what most business pay to borrow.

Scrap metal may well be the destination of the YRC fleet.
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I don’t know if your figures are correct or not but let’s assume for a moment they are (I believe you). 150 million in losses for 2012. 54 million in losses for 6 months in 2013 or (54x2)108 million in 2013. And the second half of the year is usually more profitable than the first. But I digress, I see a downward trend in the losses year over year. And that is while paying extremely exorbitant interest rates. Now, how would yrc be doing if the interest rate was lowered and the loan extended out 10 or 15 years to reduce the payment?
 
Oh, and something that was thrown in my face at the union meeting Saturday; if yrc go’s out of business, ABF will have to pick up their pension liability. The implication being I should keep my mouth shut before I am out of a job.
 
Homesick said:
Oh, and something that was thrown in my face at the union meeting Saturday; if yrc go’s out of business, ABF will have to pick up their pension liability. The implication being I should keep my mouth shut before I am out of a job.
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Some people think that the freight division is the only ones paying in to these pension funds! Not true at all! There's a lot of different crafts paying their fair share. It's sounds like your union reps are rallying for a yes vote!
 
Homesick said:
Oh, and something that was thrown in my face at the union meeting Saturday; if yrc go’s out of business, ABF will have to pick up their pension liability. The implication being I should keep my mouth shut before I am out of a job.
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What comes out of your mouth is not going to change the outcome at YRC (or a lot of other places) and you are free to voice your opinions. So I say carry on! BTW, who made the false claim about ABF picking up YRC's liability? I like to ask for an explanation when the spew garbage like that.
 
Homesick said:
Oh, and something that was thrown in my face at the union meeting Saturday; if yrc go’s out of business, ABF will have to pick up their pension liability. The implication being I should keep my mouth shut before I am out of a job.
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I believe current bankruptcy law moves pension liability to the front of the creditor list,....in other words, pension funds get paid first, before fuel, insurance , rent and monies owed to repair shops. Small comfort to a guy who lost his job, but designed to keep companies from using bankruptcy to avoid pension liabilities. Many pension funds are also looking at some sort of a hybrid fund, which would segregate a bankrupt companies' seniority list from the rest of the pension fund participants,......a good strategy that probably should've been used 15 years ago, ....or at least as late as the Pension reform Act of 2001, which had given pension relief to single employer funds only,......multi-employer funds , at that time, only had a 5% default rate, as opposed to a 30% default rate for single employer plans,.......We had to wait until the PPA of 2006,...in other words, wait until multi-employer plans were critical, and on life support,..instead of trying for a fix 5 years sooner...Thanks, Congress!
 
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