YRC Worldwide, Inc., an Overland Park, Kansas-based trucking company, reported a slimmer second-quarter deficit and said "significant operating momentum" would push growth through the rest of the year.
Shares of YRC fell as much as 26 percent, nevertheless, as the carrier, which barely prevented bankruptcy last December, said it still faced many challenges.
According to analysts the factors in the price pressure were non profit-taking and general volatility associated with the company. Still profits by and large were in line with market forecasts, even surpassing average expectations.
In the second quarter YRC reported it lost $9.5 million, or 1 cent a share, compared with last year's net loss of $309 million, or $5.20 per share..
The pace of daily shipments dropped year over year which resulted to 8.7 % revenue deficit to $1.12 billion.
According to Thomson Reuters I/B/E/S, on the average, analysts were expecting a loss of 8 cents a share on revenue of $1.2 billion.
The U.S. Trucking company said it was seeing consecutive augmentations in business volumes, positioning it for further growth in the third quarter.YRC is aware that it still faced many uncertainties and would continue to cut costs and sell assets.
Last year, YRC experienced customers jumping boat as it struggled to stay afloat amid heavy competition and a swollen debt load.
YRC said profit per shipment increased even as daily shipments fell 18.6 percent in the second quarter from the year-ago period for its national business, and plunged 3.1 percent for its regional business.
Shipments per day are escalating, by 8 percent for national and 13.8 percent for regional, with revenue per shipment up 0.9 percent and 0.5 percent, respectively. This is in comparison with the first quarter of 2010.
YRC Chairman Bill Zollars said in a statement: "With the significant operating momentum we achieved throughout the second quarter and experienced in July, the company is positioned for further growth."
Though capacity and volume were about balanced, the company was continuing to "work on costs," according to Zollars
YRC also reveals that as part of its reorganization, it anticipates a second closing of its sale of an additional $20.2 million of 6 percent senior convertible notes. Net proceeds from the sale will be utilized to finance the settlement of any of the approximately $20 million of remaining 5 percent notes tied to an August 9 put option.
The Overland Park, Kansas-based trucking company is continuing to bargain with its union over a schedule for the continuation of delayed pension contributions.
YRC shares plummeted as low as 30 cents before trading down 18 percent at 37 cents on Nasdaq. The stock has traded as high as $6.18 in the past 12 months.