YRC Worldwide stock tumbles after disappointing earnings, as labor dispute fuels customer concerns

Shares of YRC Worldwide Inc. (YRCW) tumbled 22.5% toward a 7 1/2-month low in afternoon trading on Thursday, after the trucking company reported a second-quarter loss that was much wider than expected, while revenue declined more than analysts projected. Before the open, YRC said it swung to a net loss of $21.6 million, or 71 cents a share, from a profit of $18.7 million, or 43 cents a share, in the year-earlier period. That missed the average analyst loss estimate of a penny a share, according to FactSet. Revenue fell 4.1% to $1.27 billion, just below the FactSet consensus of $1.29 billion. Although the company said it ratified the labor agreement during May, Chief Executive Darren Hawkins said the contract impacted the company in "several" ways. "First, we saw declining revenues due to temporary customer concern surrounding the labor negotiation," Hawkins said. "Second, while the labor contract was ratified midway through May, the economic package was retroactive to April 1, 2019. In the short-term, this created cost headwinds that we were not fully able to offset during the quarter with revenue growth or cost savings ." The stock has slumped 52.0% over the past three months, while the Dow Jones Transportation Average has slipped 3.8% and the Dow Jones Industrial Average has gained 2.0%.

-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com


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  08-09-19 1434ET
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