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YRC Worldwide accelerates integration strategy; expects solid profit in q3 - Quick Facts

YRC Worldwide Inc. (YRCW) announced that it is accelerating its integration strategy, focusing on its two largest operating subsidiaries, Yellow Transportation and Roadway.

The company noted that since acquiring Roadway, the company has reduced duplicate back-office functions, shared technology applications, formed common management teams and, most recently, combined corporate sales.

By operating one national network, the company said it expects to significantly increase its network density resulting in lower fixed costs. The effort is expected to extend through 2009 with a run-rate annual operating income improvement in excess of $200 million.

Looking ahead, the company said it expects a solid profit in the third quarter 2008 due to the curtailment gain of about $0.70 per share related to the harmonization of its retirement plans for nonunion employees. However, as a result of the further weakness in the economy, the company now sees a slight loss from core operations in the quarter.

The company also anticipates reorganization costs of about $0.06 to $0.08 per share primarily related to employee severance.

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