YRC downgrades profit expectations
YRC Worldwide Inc. has lowered its earnings per share expectations for the first quarter 2006 to be in the range of 65 cents to 70 cents from its previous guidance for the quarter of $1.00 to $1.05 per share.
“Although our business levels remain ahead of last year, overall volumes for the quarter are projected to come in below our expectations across all of our asset-based business units,” said Bill Zollars, YRC’s chairman, president and chief executive officer.
“In addition to general competitive pressure, some of our large retail customers have made significant inventory adjustments in the quarter, which have impacted our business levels. Cost overruns in several areas at Yellow Transportation are also negatively impacting the company’s results. The change of operations at Roadway Express is going as planned and is not a contributor to the earnings update.
“Our view on the economy for 2006 has not changed, particularly based on apparent strength in the manufacturing sector. We are taking steps to adjust our cost base as necessary and address specific customer situations,” Zollars said.
The Overland Park, Kan.-based company, formerly known as YellowRoadway, is parent company of YRC Regional Transportation, which comprises New Penn Motor Express and the USF companies, USF Holland, USF Reddaway, USF Bestway and USF Glen Moore.
YRC will announce its first quarter results in late April.