FedEx Freight | YRC 2Q Results
- Thread starter esarde
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You're probably right here, but with respect to dropping $300 mil a quarter things like wage cuts and pension payment suspensions are like throwing deck chairs off the Titanic.
:Violin:
Clandestine_ice
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imported_FR8SALES
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Analyst Feedback on YRC Worldwide Second Quarter Results
Some Wall Street analysts noted in research reports that YRCW is on less than stable footing, with financial and operating conditions
ostensibly not showing material improvement.
“YRC’s 2Q09 financial losses were abysmal, but cash flow is what is important at the moment, in our opinion,” said David Ross,
an analyst at Stifel Nicolaus. “Unfortunately for YRC, cash flow remains significantly negative and could remain so even if wage/
pension concessions go through. The theme of at least the last several YRC quarterly earnings releases and conference calls has been
‘We know the numbers and trends look bad, but we’ve got a plan. Things will be better.’ And what has happened? Volumes, margins,
and cash flow have sharply declined. It’s not just the economy; it’s the company – YRC is performing worse by far than any of its
competitors.”
J.P. Morgan analyst Tom Wadewitz wrote in a research note that YRCW’s large 2Q09 loss highlights the tremendous pressures on its
financial performance at the present time. “We believe that YRCW’s liquidity position at the end of 2Q and the flexibility it continues to
receive from its bank group provide it with enough cash to last through 3Q09 assuming a modest improvement in the pace of cash burn
in 3Q compared to 2Q,” stated Wadewitz. “However, visibility to YRCW’s financial performance remains very limited and significant
improvement is necessary in order to reach the point of being cash flow break even. If tonnage stabilizes for YRCW and it executes on
cost savings initiatives well beyond the pension and wage cuts (within the revised Teamster agreement), YRCW potentially could move
toward a more stable position. Our sense is that there remains a very significant probability that YRCW may not survive beyond the next
several months.”
Some Wall Street analysts noted in research reports that YRCW is on less than stable footing, with financial and operating conditions
ostensibly not showing material improvement.
“YRC’s 2Q09 financial losses were abysmal, but cash flow is what is important at the moment, in our opinion,” said David Ross,
an analyst at Stifel Nicolaus. “Unfortunately for YRC, cash flow remains significantly negative and could remain so even if wage/
pension concessions go through. The theme of at least the last several YRC quarterly earnings releases and conference calls has been
‘We know the numbers and trends look bad, but we’ve got a plan. Things will be better.’ And what has happened? Volumes, margins,
and cash flow have sharply declined. It’s not just the economy; it’s the company – YRC is performing worse by far than any of its
competitors.”
J.P. Morgan analyst Tom Wadewitz wrote in a research note that YRCW’s large 2Q09 loss highlights the tremendous pressures on its
financial performance at the present time. “We believe that YRCW’s liquidity position at the end of 2Q and the flexibility it continues to
receive from its bank group provide it with enough cash to last through 3Q09 assuming a modest improvement in the pace of cash burn
in 3Q compared to 2Q,” stated Wadewitz. “However, visibility to YRCW’s financial performance remains very limited and significant
improvement is necessary in order to reach the point of being cash flow break even. If tonnage stabilizes for YRCW and it executes on
cost savings initiatives well beyond the pension and wage cuts (within the revised Teamster agreement), YRCW potentially could move
toward a more stable position. Our sense is that there remains a very significant probability that YRCW may not survive beyond the next
several months.”
imported_bumped
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this is sad to me, alot of good people, yes people, not only good drivers, may not make it. i hope they do make it, without them is our future mey not be as bright as you may think, wage cuts, concessions, more lay offs, if they have already lost 40 percent or more of their freight, who is hauling it, sure have not seen an increase here at fedex,
GyroGearLoose
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Of course not. FedEx Freight rates are too high! For example my dad buys and sells motorcycles and he does business in Norcross, GA. He went to the nearest FedEx Freight terminal which is ANB (Anniston) and asked for a quote for a motorbike to be shipped from Norcross to the ANB terminal as a dock pickup. FedEx quoted him a price of $110.00. He declined, and called Old Dominion and they gave him a quote of $60. Guess which one he picked.
imported_River17
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FR8SALES
I bet that when Zollars bought Roadway and USF a few years ago, he never
could have imagened that by January 2009 we would have a community organizer trying to put the private sector out of business in order to pass single payer socialized medicine. If we are all poor, then we may get free medical care.............
imported_River17
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bumped
Most of that 40% of the freight just vanished into thin air.
Just like the 40% of our 401K plan money vanished into thin air.
It may take a lot longer time than YRCW can hang around to see the freight come back to 2006 levels.
fartknocker
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FedEx Freight offers premium service, thats why it costs more. Its what we do. Hauling freight for profit and not just for the sake of hauling it was an AF thing also. I do have the concern that YRC is being nipped a part by our competitors and we arent doing anything.
imported_Mike Varnco
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Well, just picking one lane from one origen point to another doesn't tell alot about a carrier.
Because density is the name of the game in LTL.
Old Dominion has a strong presence in the SE, so they probably have better lane density to certain points in the south...and hence cheaper spot quotes.
But choosing an LTL carrier strictly by price is a bad idea because LTL is not a standardized service.
What is OD's claims ratio compared to FedEx Freight?
What is OD's on-time% compared to FedEx Freight?
If you file a claim, will you need to pull teeth to get your money back?
The price quote doesn't tell you that.
We landed some accounts from R&L carriers, who are cheaper than a 2 dollar *****.
But they wouldn't pay claims so the customer came back to us.
Alot of these outfits have cheap prices, but the service is sub-par.
And if there's a claim, you may be rolling the dice.
imported_FR8SALES
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Hey Mike, you are spot on like always.
You guys want to see what the industry is thinking on a time frame for YRC? Check this out.
YRC Cash Down to Three Months, Say Analysts
YRC Cash Down to Three Months, Say Analysts | Journal of Commerce
You guys want to see what the industry is thinking on a time frame for YRC? Check this out.
YRC Cash Down to Three Months, Say Analysts
YRC Cash Down to Three Months, Say Analysts | Journal of Commerce
GyroGearLoose
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Well, the answer was he drove to Norcross, GA. himself to pickup the bikes. He such a tightwad!! Gotta love him!
People insist on watching YRC instead of focusing on Fedex . It's like a kid in the back yard looking at the neighbor kid with the new bike instead of thinking of ways to get himself a new bike . Look face the fact YRC is'nt going anywhere . Who gives a rats *** what YRC does and we need to turn our attention on how can we make Fedex better . YRC will take care of YRC and won't waste one minute on thinking of Fedex . This YRC thing with people is also like the neighborhood watch group ...you can watch all you want but you have no power to do anything about them . Concentrate on your own problems such as finance relief over mortgage home , and so on . Look my friend Dave can help you Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan. or Refinance Mortgage, Home Loan, Home Equity, Home Purchase, Debt Consolidation - LowerMyBills . Let YRC worry about YRC . Like a bunch of little kids . Now go drink some Kool-Aid !!!
imported_bumped
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what fed ex purple coolaid, your something else
I
imported_average joe
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I think everybody should be concerned about YRC. it's monkey see monkey do when it comes to wages and benefits. How long after yrc took a pay cut did it take FedEx and others to lower every bodys wages and cut the 401 contributions? I personaly have a non teamster non stock market dependent pension. but if you think if yrc goes broke it's going to solve your freight level problems your most likely going to be dissapointed.FedEx and others will lower wages even further because the bar will be lowered and they will feel like they are they only game in town
I must have missed the wage cuts at FedEx. Except for the managers, I don't remember any hourly wages being cut. Hours, yes. Wages, no...unless i missed something...
Now Conway, if I recall, their hourly and drivers took a 5% paycut...and probably lost hours too...
oaf
imported_River17
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Old AF
Actually we also got a 3.5% wage cut, when they cancelled the 401K plan company match.
On an 80K a year salary that would be around $2800 dollars less to the bottom line.