(Adds S&P action on Con-way, updates stock quotes)

 
   DOW JONES NEWSWIRES 
 

Truckers YRC Worldwide Inc. (YRCW) and Con-way Inc. (CNW) posted first-quarter losses as the industry deals with slumping shipping demand.

YRC shares fell 3.4% to $3.43 after hours, while Con-way dropped 10% to $20.

Transporters of all types in recent days have been reporting significant volume declines as U.S. economic output continues to shrink. As a result, companies, including YRC and Con-way, have been cutting a host of costs in addition to jobs.

Con-way President and Chief Executive Douglas Stotlar said, "There are some signs that our freight volumes may be nearing a bottom. However, feedback from our customers as well as trend data for industrial output and inventory levels indicate that shipping volumes are likely to remain restrained, certainly for the short term."

YRC has had its own troubles regarding its debt load, which the company has been struggling to refinance. Talks with lenders have been ongoing for months and on Thursday YRC gave no update in its press release.

Meanwhile, the company reported a net loss of $257.4 million, or $4.34 a share, compared with a year-earlier net loss of $46.4 million, or 82 cents a share. Excluding charges including restructuring and a pension settlement, the latest loss would have been $2.63.

Revenue dropped 33% to $1.5 billion.

The mean estimates of analysts surveyed by Thomson Reuters were a loss of $1.90 a share on revenue of $1.61 billion.

Per-day tonnage for its national segment slumped 30%, with the regional business seeing a 22% drop when adjusted for network changes that took place early last year. Absent that, the drop was 28%. Part of the decline was due to fears regarding the March 1 integration of the Roadway and Yellow brands.

Con-way posted a net loss of $152.3 million for the first quarter, or $3.35 a share, compared with year-earlier net income of $24.1 million, or 47 cents a share. The latest results included a goodwill write-down of $134.8 million, or $2.93 a share.

Revenue declined 20% to $962.9 million.

Analysts were expecting a 22-cent loss, excluding items, and revenue of $1.06 billion.

Con-way's less-than-truckload unit, which carries goods for multiple customers on the same vehicle and its largest business division, reported revenue slid 25% as tonnage per day dropped 12%.

Standard & Poor's Ratings Services responding by putting Con-way on watch for downgrade. Its long-term corporate credit rating is BBB-, one step above junk territory. The ratings firm said declining tonnage and industry overcapacity should continue to put pressure on Con-way's earnings and cash flow for the rest of this year.

-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136; kevin.kingsbury@dowjones.com