YRC: Slowdown will lower earnings
YRC Worldwide Inc. said it expected reduced fourth quarter earnings due to a slowdown in the economy.
'The economy has slowed significantly in the fourth quarter, resulting in lower volumes than we anticipated across all of our asset-based business units,' said Bill Zollars, chief executive officer.
The company now expects fourth quarter diluted earnings per share to be in the range of $0.95 to $1.05 and full year 2006 earnings to be $5.00 to $5.10 per share. The company’s previous guidance was $1.40 to $1.50 per share for the fourth quarter and $5.45 to $5.55 per share for the year.
Fourth quarter tonnage is projected to be lower than 2005 by a mid-single digit percentage for each business unit.
The company said 'although pricing has remained disciplined in the marketplace, it is somewhat below the company's expectations.'
YRC's subsidiaries include Yellow Transportation, Roadway, Reimer Express, Meridian IQ, New Penn, USF Holland, USF Reddaway, USF Bestway and USF Glen Moore.