YRC heading back to black? But capacity cuts continue

OVERLAND PARK, Kan. — While some U.S. truckers are looking to expand capacity as economy improves, LTL giant YRC Worldwide’s reaction appears to be the opposite.

The carrier this week reported improving volumes and customer confidence, but, according to news reports, the company is also facing liquidity pressure and it looking to continue downsizing as business revives.

YRC, which has narrowly averted bankruptcy more than once since implementing its comprehensive restructuring plan, said it expects its operating income to be in the black for the second quarter (before interest, depreciation and debt)

However, even though it has sold or leased back several terminals already, the heavily indebted company must also continue shedding assets, including, it says, "non-strategic" assets.

Making additional equity available is also a possibility for the carrier, which is said to have lost more than $2 billion in the last three years.