YRC shares set to open 25 pct down after bigger-than-expected loss
Nov 13 (Reuters) - Shares of YRC Worldwide were set to open 25 percent lower after the trucking company reported a bigger-than-expected quarterly loss, citing a shortage of drivers.
The company said on Tuesday that its cost-cutting had led to a shortage of drivers at some terminals, forcing it to pay overtime and hire third-party carriers.
The situation was exacerbated by summer holidays, YRC said.
"Simply put, we were operating an inefficient network," Chief Executive James Welch said on a conference call, after the company reported a net loss of $44.4 million, or $4.45 per share, for the third quarter ended Sept. 30.
Analysts on average had expected a loss of 46 cents per share, according to Thomson Reuters I/B/E/S.
YRC said in August that it was considering refinancing its debt as the trucking industry faced challenges ranging from a shortage of experienced drivers to new regulations that required truckers to work shorter hours.
The company's revenue rose 1 percent to $1.25 billion, slightly below the average analyst estimate of $1.26 billion.
YRC shares were down at $7.32 in premarket trading on Wednesday. The stock has fallen 73 percent in the four months to Tuesday's close, compared with a 5 percent gain in the S&P 500 index.
(Reporting by Mridhula Raghavan and Rohit T. K. in Bangalore; Editing by Kirti Pandey)