YRC posts big losses after fourth quarter charges
Heavy fourth quarter charges saw YRC Worldwide Inc. post a net loss of $735.8 million, compared to a profit of $46.5 million in the last three months of 2006.
The Overland Park, Kan.-based company’s quarterly result included impairment charges of $782 million resulting from the company’s annual impairment review of goodwill and certain other intangible assets arising from its acquisitions; $9 million reorganization costs primarily related to executive severance charges; and $8 million in technology charges. The company said it does not consider these charges when evaluating core performance.
YRC, whose list of brands include Yellow Transportation, Roadway, Reimer Express, USF, New Penn and YRC Logistics, posted a fourth quarter operating loss of $781.6 million from an operating income of $107.7 million a year before. Operating revenue for the period declined 2.4 percent to $2.35 billion.
For the whole of 2007, YRC posted a net loss of $638.4 million from a profit of $276.6 million in 2006. The company had an annual operating loss of $565.2 million, compared to an operating income of $545.4 million in the previous year. Annual operating revenue slipped 3 percent to $9.62 billion.
“The economic environment was challenging throughout 2007 and it was increasingly so in the fourth quarter,” said Bill Zollars, YRC's chairman, president and chief executive officer. “Looking forward, we expect the first quarter to also be difficult given it is seasonally the softest and we don’t anticipate the economy improving in the near term. As the largest less-than-truckload provider, we are well positioned to benefit from economic recovery, when it occurs.”