YRC Worldwide reported an absolutely disatrous quarterer after the bell this evening. The large transportation company is an excellent barometer of economic health, but while they see signs of stabilization they see no signs that lead them to believe there will be a recovery in 2009 or 2010. CEO Bill Zollars said in the press release:
“We have seen signs of encouragement in the economy including stabilization in our absolute volumes, though we think it is too early to confirm that this is the bottom of the recession,” Zollars stated. “We remain optimistic that economic improvement could happen earlier than expected but we do not have it reflected in our financial plans until we progress through 2010.”
His tone on the conference call was far less optimistic, however. Zollars said the “operating environment remains very challenging” and that he doesn’t “expect significant growth in 2009 or 2010”. He does confirm what we’ve been hearing for months – the economy has stopped falling off a cliff. He said year over year volumes have not improved, but volumes have stabilized. Tonnage is “remarkably consistent” according to Zollars.