YRC Worldwide Posts Wider-than-expected Loss In Q2, Revenue Misses View

(RTTNews) - Transportation company YRC Worldwide, Inc. (YRCW) Wednesday reported a narrower loss for the second quarter that was wider than analysts expected. Revenue slid from the prior year, but missed Wall Street expectations. The stock is plunging more than 17 percent in pre-market activity.

Net loss attributable to the company narrowed to $15.1 million from $22.6 million in the previous year. Loss per share narrowed to $1.72 from $3.21.

On average, 5 analysts polled by Thomson Reuters expected loss per share of $0.64 for the quarter. Analysts' estimates typically exclude one-time items.

Operating revenue fell to $1.243 billion from $1.251 billion. Analysts estimated revenues of $1.26 billion for the quarter.

Operating income dropped to $14.3 million from $15.5 million, despite a fall in expenses. The latest results included $1.3 million loss on asset disposals compared to $6.5 million gain on asset disposals in 2012.

Revenue fell 2.9 percent in YRC Freight to $797.6 million, and operating loss widened. According to the company, a network optimization plan implemented in May was hampered due to increased shipment volumes. As a result, service, operations and financial results were adversely affected.

Regional Transportation revenue rose 3.5 percent to $444.9 million and operating income climbed 10 percent as the Regional carriers continued to perform at market levels.

YRC has some debt maturities in 2014 and 2015. The firm recently retained Credit Suisse, in addition to its financial advisor The MAEVA Group, to assist the company in developing refinancing and recapitalization options.

YRCW, which closed at $28.58 on Tuesday, is plunging 17.1 percent in pre-market activity.