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YRC Worldwide Hits the Brakes

The trucking company says a slowing economy will hurt its fourth-quarter results.
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YRC Worldwide

(YRCW) - Get YRC Worldwide Inc. Report

posted softer-than-expected third-quarter results Thursday and cut its forecast for the full year, citing a slowing economy.

For the third quarter, the trucking outfit earned $95.8 million, or $1.64 a share, up from $85.3 million, or $1.42 a share, a year earlier.

Adjusted earnings, which exclude various charges, rose to $1.72 a share from $1.53 last year.

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Analysts polled by Thomson First Call projected adjusted earnings of $1.73 a share. The company's own guidance called for earnings of $1.70 to $1.80 a share.

Revenue climbed to $2.57 billion from $2.49 billion, short of Wall Street's expectation of $2.64 billion.

For the full year, YRC forecast earnings of $5.45 to $5.55 a share, below its July forecast of $5.65 and $5.85. The company sees fourth-quarter EPS of $1.40 to $1.50. Analysts project earnings of $1.59 a share for the fourth quarter and $5.67 a share for the full year.

"We have been pleased with the solid results our business units have delivered so far in 2006," said Bill Zollars, chairman, president and CEO. "With that said, the economy is growing at a much slower pace and we believe that will impact our earnings growth in the fourth quarter."

Shares of YRC were down 60 cents, or 1.5%, to $38.60 after hours.