YRC Worldwide reports FY-2009 pre-tax loss of US$899 mn

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05 February 2010

Improvement in year-on-year and sequential quarterly results

YRC Worldwide Inc. has reported year-over-year and continued sequential improvement in its fourth quarter 2009 results. For the quarter ending December 31, 2009 the Company announced pre-tax income of US$50.0 million that included a net gain on note exchanges of US$194.0 million, lease termination charges of US$8.0 million related to further optimisation of the YRC network, and severance charges of US$3.0 million due to further headcount reductions.

For the full year 2009 the Company reported a pre-tax loss of US$899.0 million compared to a full-year pre-tax loss in 2008 of US$1,147.0 million, including impairment charges of US$1,023.0 million.

For the fourth quarter of 2008 the Company reported a pre-tax loss of US$353.0 million which included impairment charges of US$200.0 million. The Company reported an operating loss of US$95.0 million for the fourth quarter of 2009, a continued sequential improvement from the third quarter operating loss of US$118.0 million, which included a net gain on property disposals of US$11.0 million, following the sequential improvement reported for the second quarter, and a year-over-year improvement from the fourth quarter of 2008 operating loss of US$335.0 million, which included impairment charges of US$200.0 million.

The Company has not provided after-tax earnings information in its announcement as it is currently completing its income tax provision. This delay is caused by the time required to complete a valuation analysis together with the underlying complexity of the accounting associated with the debt-for-equity exchange.

For the fourth quarter the company completed sale and financing leasebacks of US$26.0 million and sold US$27.0 million of surplus property. During 2009 the Company completed sale and financing leasebacks of US$332.0 million and sales of surplus property of US$133.0 million, and deferred union pension contributions of US$171.0 million, all as part of the company's self-help liquidity plan.

Key Segment Information – Q4 2009 compared to Q4 2008:

YRC National Transportation total shipments per day down 39.9% and total revenue per hundredweight, including fuel surcharge, down 4.2%

YRC Regional Transportation total shipments per day down 19.9% and total revenue per hundredweight, including fuel surcharge, down 7.7%

News Source : YRC Worldwide reports FY-2009 pre-tax loss of US$899 mn