| YRC Warns of Impairment Charges |
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October 8, 2008 Tuesday's collapse of share prices for YRC Worldwide threatens the company with a further loss of value when it reports third quarter results. In an SEC filing on Oct. 8, the LTL trucking giant warned of impairment charges that may result from current market capitalization and economic trends. The filing comes one day after CEO William D. Zollars attempted to reassure shippers at the annual meeting of the Council of Supply Chain Management Professionals in Denver that the company's "balance sheet is going to be fine." As of the end of the third quarter, "the possibility of impairment exists in connection with goodwill and trade names for the National Transportation segment, trade names for the Regional Transportation segment and goodwill for the YRC Logistics segment," YRCW said in the 8-K filing. The company said it is testing its assets and will include any non-cash charges in its third quarter results. A write down would be the second such charge over the last 10 months against the company's value. Last December YRC recalculated the fair market value of its Roadway long-haul and USF regional subsidiaries. That led to an estimated $700-$800 million non-cash charge to write down in the fourth quarter of 2007. From Traffic World OnLine |
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