Shares of YRC Worldwide Inc. (NASDAQ: YRCW) are down sharply in today’s trading after the company reported that CEO Bill Zollars will step down, further compacted by a second-quarter loss. At last check, YRC shares were down 6.19% to $1.06.
Zollars’ resignation isn’t a surprise – the CEO in September announced his plans to leave the struggling trucking company, appeasing requirements of the International Brotherhood of Teamsters union who reportedly called for his departure in the midst of restructuring negotiations between it and the company.
YRC reported second-quarter net loss of $39 million, compared with a net loss of $10 million reported for the same period in the previous year. The company’s consolidated operating revenue for the second quarter of 2011 was $1.257 billion, compared with consolidated operating revenue of $1.119 billion reported for the same period in the previous year.
YRC reported consolidated operating loss of $2 million for the second quarter of 2011, compared with consolidated operating income of $48 million reported for the same period in the previous year.
Bill Trubeck, interim vice president and CFO of YRC, said that the company is pleased with the continued year-over-year growth in business volumes and improvements in earnings as it achieved consolidated adjusted operating income for the second quarter.
For full-year 2011, the company expects gross capital expenditures of around $125 million. The company expects excess property sales to be between $30 million and $40 million.
YRC expects the recent $400 million loan facility and net cash proceeds of $100 million from new notes to boost liquidity and provide a runway for the continued growth in revenues and earnings.
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