NEW YORK (AP) — In a story July 1 about YRC Worldwide, The Associated Press, relying on an outdated release provided by BB&T, reported erroneously that the company was upgraded to "Hold" from "Underweight." It was upgraded to "Buy" from "Hold."
A corrected version of the story is below:
YRC shares rise on optimism about turnaround
Shares of YRC Worldwide hit 52-week high on optimism about turnaround
NEW YORK (AP) — Shares of YRC Worldwide rose to their highest price in nearly two years Monday on optimism that the trucking company has turned a corner and is moving in the right direction.
THE SPARK: BB&T Capital Markets analyst Thomas Albrecht boosted his rating on YRC to "Buy" from "Hold," saying that while there is much work left to be done, the company's recent efforts show that things are improving.
THE BIG PICTURE: Like other trucking companies, Overland Park, Kan.-based YRC took a hit during the Great Recession, when consumer spending dropped and shipping dwindled.
For a while YRC teetered near bankruptcy, but it brought in new management, restructured debt and cut costs. It sold off unprofitable businesses and excess real estate, raising the cash it needed to avoid filing for bankruptcy protection.
THE ANALYSIS: "We believe the turnaround already has traction, but many are unaware of how far YRC has come,'" Albrecht wrote in a note to investors.
The analyst sees improvements in several areas of the company's operations, adding that YRC is starting to upgrade its equipment, revitalized sales and marketing and has taken steps to boost efficiency.
THE SHARES: Up $2.57, or 8.9 percent, to $31.32 in Monday afternoon trading. They peaked at $31.94 earlier in the day at their highest price since September 2011.