(Adds S&P action on Con-way, updates stock quotes)
DOW JONES NEWSWIRES
Truckers YRC Worldwide Inc. (YRCW) and Con-way Inc. (CNW) posted
first-quarter losses as the industry deals with slumping shipping
demand.
YRC shares fell 3.4% to $3.43 after hours, while Con-way dropped
10% to $20.
Transporters of all types in recent days have been reporting
significant volume declines as U.S. economic output continues to
shrink. As a result, companies, including YRC and Con-way, have
been cutting a host of costs in addition to jobs.
Con-way President and Chief Executive Douglas Stotlar said,
"There are some signs that our freight volumes may be nearing a
bottom. However, feedback from our customers as well as trend data
for industrial output and inventory levels indicate that shipping
volumes are likely to remain restrained, certainly for the short
term."
YRC has had its own troubles regarding its debt load, which the
company has been struggling to refinance. Talks with lenders have
been ongoing for months and on Thursday YRC gave no update in its
press release.
Meanwhile, the company reported a net loss of $257.4 million, or
$4.34 a share, compared with a year-earlier net loss of $46.4
million, or 82 cents a share. Excluding charges including
restructuring and a pension settlement, the latest loss would have
been $2.63.
Revenue dropped 33% to $1.5 billion.
The mean estimates of analysts surveyed by Thomson Reuters were
a loss of $1.90 a share on revenue of $1.61 billion.
Per-day tonnage for its national segment slumped 30%, with the
regional business seeing a 22% drop when adjusted for network
changes that took place early last year. Absent that, the drop was
28%. Part of the decline was due to fears regarding the March 1
integration of the Roadway and Yellow brands.
Con-way posted a net loss of $152.3 million for the first
quarter, or $3.35 a share, compared with year-earlier net income of
$24.1 million, or 47 cents a share. The latest results included a
goodwill write-down of $134.8 million, or $2.93 a share.
Revenue declined 20% to $962.9 million.
Analysts were expecting a 22-cent loss, excluding items, and
revenue of $1.06 billion.
Con-way's less-than-truckload unit, which carries goods for
multiple customers on the same vehicle and its largest business
division, reported revenue slid 25% as tonnage per day dropped
12%.
Standard & Poor's Ratings Services responding by putting
Con-way on watch for downgrade. Its long-term corporate credit
rating is BBB-, one step above junk territory. The ratings firm
said declining tonnage and industry overcapacity should continue to
put pressure on Con-way's earnings and cash flow for the rest of
this year.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com
