2 Min Read
(Adds details of centers to close, background)
DETROIT, Feb 7 (Reuters) - YRC Worldwide Inc (YRCW.O), North America's largest trucking company said on Thursday that regional subsidiaries would close a total of 27 service centers, resulting in charges of $10 million.
The subsidiaries - USF Holland and USF Reddaway - are likely to close the centers on Feb. 22 and the majority of the charge is expected in the first quarter, YRC Worldwide said in a regulatory filing with the U.S. Securities and Exchange Commission.
The move is part of a previously announced $100 million profit improvement plan at Overland Park, Kansas-based YRC.
YRC is a less-than-truckload (LTL) operator. LTL companies consolidate smaller loads into a single truck.
It is an asset-intensive business using large warehouse facilities where loads are exchanged. YRC calls these "service centers."
Six service centers at USF Holland are to close, while USF Reddaway will shut down 21 facilities.
YRC has struggled with integrating USF Corp, which it bought in 2005, into its network.
In January YRC reported a fourth-quarter noncash impairment charge of $782 million, most of which was related to the declining value of USF.
Some analysts have said that to improve its performance, YRC needs to shut down service centers and lower the labor costs of its largely unionized workforce.
In afternoon trading on Nasdaq, YRC shares were trading down 7 cents at $17.39. (Reporting by Nick Carey and Ratul Ray Chaudhuri; Editing by Tim Dobbyn)