Kansas-based trucking company YRC Worldwide Inc., which has a significant midstate presence, likely will continue to shed operations and facilities as part of ongoing restructuring under new leadership, an analyst with Germany-based Deutsch Bank said today.
"We expect the company to continue to divest non-core operations and facilities to improve liquidity and better streamline operations," Deutsch Bank analyst Justin Yagerman wrote in a research note to investors.
That process began in December when it sold its Carlisle-based truckload subsidiary, YRC Glen Moore Inc., to Celadon Trucking Services Inc.
YRC recently hired NRC Realty & Capital Advisors to coordinate the auction of 62 surplus properties, which should help improve the company's overhead costs for the future, Yagerman wrote. However, he still cautioned investors about YRC.
"While the company has shown some signs of progress and should benefit from further yield improvement and increased network density, we feel that operating risks remain given ongoing network changes, a high cost structure, and financial leverage," he wrote.
As the trucking industry picks up with the rebounding economy, YRC also has potential to improve its struggling business, analysts and industry experts said last month.