YRC Worldwide, Inc. (NASD: YRCW), a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The company’s chairman and chief executive officer, Bill Zollars, recently commented on the integration of YRC’s two largest operating subsidiaries, Yellow Transportation and Roadway.
“This integration is the result of the weaker economy creating enough capacity for us to get this done at a very low risk. It allows us to build the most comprehensive network in our part of the industry. This integration increases density by doubling the amount of business that we are putting through that network and enables us to improve dependability, reliability and speed for all of our services to our customers.”
This integration is expected to ultimately lower fixed costs while enhancing overall service performance. However, this effort is expected to extend through 2009 with a run-rate annual operating income improvement in excess of $200 million. Also, as a result of weaker economic conditions and some early investments in the integration of the national networks, YRC Worldwide now expects a slight loss from core operations in the third quarter. Shares of YRC Worldwide traded lower earlier this week after the announcement.
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