(Updates share movement, adds financial details)
By Carey Gillam
OVERLAND PARK, Kan. (Reuters) - Troubled U.S.
trucker YRC Worldwide Inc reported a narrower
second-quarter loss Tuesday and said "significant operating
momentum" would drive improvements through the rest of the
Shares dropped nearly 15 percent, however, as the carrier,
which narrowly averted bankruptcy last December, said it still
faced many challenges.
Last December, YRC, the largest U.S. trucking company
handling smaller, or less-than-truckload shipments, negotiated
a $470 million debt-for-equity swap with most bondholders. That
allowed the company to restructure its finances.
In its restructuring, YRC has laid off thousands of workers
and sold off assets, and it said Tuesday it expects to make
more real estate sales of about $50 million.
The company said it was seeing sequential growth in
business volumes, positioning it for further growth in the
third quarter, but warned it still faced many uncertainties and
said it would continue to trim costs and sell assets.
Many customers fled YRC last year as it struggled to stay
afloat amid stiff competition and a bloated debt load.
YRC said it lost $9.5 million, or 1 cent a share, in the
second quarter, compared with a net loss of $309 million, or
$5.20 per share, a year earlier.
Revenue fell 8.7 percent to $1.12 billion as the pace of
daily shipments fell year over year.
Analysts on average were expecting a loss of 8 cents a
share on revenue of $1.2 billion, according to Thomson Reuters
YRC said that while the pace of shipments per day in the
second quarter compared with a year earlier was down 18.6
percent for its national business and down 3.1 percent for its
regional business, it saw revenue per shipment grow.
Compared with the 2010 first quarter, shipments per day are
increasing, up 8 percent for national and 13.8 percent for
regional, with revenue per shipment up 0.9 percent and 0.5
"With the significant operating momentum we achieved
throughout the second quarter and experienced in July, the
company is positioned for further growth," YRC Chairman Bill
Zollars said in a statement.
Zollars said though capacity and volume were about
balanced, the company was continuing to "work on costs."
YRC also said that as part of its restructuring it expects
a second closing of its sale of an additional $20.2 million of
6 percent senior convertible notes to be completed later on
Tuesday. Net proceeds from the sale will be used to fund the
repurchase of any of the about $20 million of outstanding 5
percent notes tied to an Aug. 9 put option.
The company continues to negotiate with its union over a
schedule for resumption of deferred pension contributions.
Shares were off 6.5 percent at 38 cents on the Nasdaq in
midmorning after falling as low as 35 cents earlier in the
session. The stock has traded as high as $6.18 in the past 12
(Reporting by Carey Gillam; editing by John Wallace and