YRC CEO: Company is 'in good shape' to weather US financial storm

Customers and smaller truckers likely have a tough road ahead, YRC CEO Bill Zollars said. Trucking bankruptcies have already been on the rise this year amid a weak economy and sluggish demand.

By Samantha Bomkamp
The Associated Press

9/24/2008

NEW YORK — The head of YRC Worldwide Inc., one of the nation's largest trucking companies, said Tuesday he expects the number of customer bankruptcies to rise if the ongoing crisis in the U.S. financial markets continues, but said YRC has enough liquidity to ride out the storm.

"We're in pretty good shape," said Bill Zollars, president and chief executive. Zollars added the company has about $600 million in liquidity.

He also noted that the crisis came at a time where the company is able to better manage it, as the trucking industry ramps up to the seasonally strong fourth quarter.

But customers and smaller truckers likely have a tough road ahead, he added. Trucking bankruptcies have already been on the rise this year amid a weak economy and sluggish demand.

As trucking bankruptcies spread, Zollars said, "it could have a domino effect on the economy."

Truckers are considered bellwethers for the nation's growth because they generally see recovery before the larger economy, as retailers buy goods to stock their shelves in preparation for a return of consumer demand.