Fri July 31, 2009
YRC Worldwide Faces Quarterly Loss
Kansas City, MO – Trucking companies are posting big losses as the recession drags on. One of the largest, YRC Worldwide, lost more than 300 million dollars in the second quarter, and may be headed for bankruptcy. KCUR's Frank Morris reports.
The amount of stuff shipped by truck, as measured in tons, fell off steeply last year, and hasn't come back. It was down more than 13% in June. That makes for a lot of idled or under filled semis and steep losses for trucking companies.
YRC Worldwide, one of the world's largest, saw its revenue cut nearly in half compared to the second quarter of last year, as it lost $309 million. YRC has scrambled to balance the books. It's scratched thousands of workers, slashed wages and benefits, and sold off millions dollars worth of property.
A lot of analysts think the company's headed for bankruptcy unless it can get its union drivers and dock workers to swallow more pay cuts, in exchange for company stock. Union members are voting on that deal now.