HERE is more DUE DILIGENCE
U.S. trucker YRC makes further job cuts
* Layoffs hit IT department
* Job cuts come amid financial restructuring
By Carey Gillam
KANSAS CITY, March 1 (Reuters) - U.S. trucker YRC Worldwide <YRCW.O> <YRCW.O> has slashed its workforce further, cutting into its already-thinned ranks as it tries to appease lenders and debt-holders as part of a broad financial restructuring.
The trucking company refused comment. Sources within the company said the No. 1 less-than-truckload carrier laid off at least 200 people in February from its Overland Park headquarters location and a campus in Akron, Ohio.
The layoffs include 90 people, or about 25 percent, in YRC's information technology division, the sources said.
Analysts have expressed concern that YRC's job cuts, coupled with voluntary departures by employees looking for more stable employment elsewhere, might leave the YRC talent pool too shallow.
"It is a concern," said Dahlman Rose analyst Jason Seidl. "You hope they can maintain enough of a talent pool so they can forward."
YRC has fired more than 4,500 employees over the last year as it struggled to stay out of bankruptcy and hold onto customers.
YRC said last month it was regaining its financial footing and was moving forward on a $70 million private placement of unsecured notes that follows a $470 million debt-for-equity swap that was key to keeping lines of credit open with lenders in December.
YRC Chairman Bill Zollars said in February that customers were returning to YRC due to the company's improved financial stability, and the bulk of the employee cuts were over.
On Feb. 23, YRC completed the sale of $49.8 million of its 6 percent convertible senior notes due 2014. YRC has been working to restructure for more than a year.
In a Feb. 25 note to investors, Morgan Keegan analyst Art Hatfield said he saw YRC continuing to struggle.
"We believe YRCW will continue to struggle as tonnage levels are not substantially improving and the company continues to burn through cash," Hatfield's note said.
That sums it up. There will not be 1Q profit. With the 90% for 90 days customers that CNW and FDX scooped up late last year, will be looking for new pricing. Customers will be returning. YRCW tightens belts, they are looking to post a profit for March.
Which $0.35 is where it will have to reach before I will be losing money and even then, it's only a $100 bucks. Something you don't even have in your Playstation account.
Let the real investors post here and not amateurs like you.