YRC Worldwide to Take 4Q Charge
$700 Mln. - $800 Mln. Charge Is Due to USF Acquisition
YRC Worldwide said Wednesday it expects to incur a fourth-quarter charge of $700 million to $800 million before taxes, primarily related to its 2005 acquisition of USF Corp.
YRC said the charge is primarily from an impairment review of 鈥済oodwill and other intangible assets鈥 related to the $1.37 billion purchase of USF.
The remainder is due to the anticipated reduction in the fair value of the trade names USF and Roadway, which YRC bought in 2003.
The charges will be about $650 million to $750 million after taxes, the company said in a statement.
鈥淲hile we are clearly disappointed with this development, it does not change our belief in the future outlook for any of our companies, particularly YRC Regional Transportation,鈥 said Bill Zollars, YRC鈥檚 chairman and chief executive officer.
YRC Worldwide is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.