YRC Quarterly Report

OVERLAND PARK, Kan., July 24 2008 -- YRC Worldwide Inc. (Nasdaq: YRCW) today announced diluted earnings per share of $.62 for the second quarter 2008, including a previously announced curtailment gain of $.39 per share and charge of $.09 per share for significant claim activity. The quarter also included a combined $.07 per share of losses on property disposals and reorganization charges. In the second quarter of 2007, the company reported $.95 of earnings per share.

"In spite of a challenging economy, our positive momentum continued in the quarter and we significantly improved our sequential results, delivering earnings consistent with previously issued guidance for the quarter," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Our actions to improve operational efficiency, get our regional companies back on track and reduce overhead costs have been effective. We are carrying that momentum forward as we implement further operational improvements in the third quarter," Zollars continued.

Segment Information

Key segment information for the second quarter 2008 included:

YRC National Transportation LTL revenue per hundredweight up 8.2% from second quarter 2007 and LTL tonnage per day down 9.9%; revenue of $1.7 billion, consistent with 2007
YRC Regional Transportation LTL revenue per hundredweight up 6.1% compared to last year and LTL tonnage per day down 17.6%; revenue of $533 million, down 11.7% from 2007

Additional statistical information is available on the company's website at yrcw.com under Investors, Earnings Releases & Operating Statistics.

Outlook

The company expects to earn between $1.05 and $1.15 per share in the third quarter 2008. These results will include a curtailment gain of approximately $.70 per share and increased union health and pension costs of approximately $.15 per share attributable to contractual increases that take effect on August 1. The company expects to offset these cost increases with operational efficiencies by year end 2008. The curtailment gains that were recognized in the second quarter and will be recognized in the third quarter of 2008 are related to the harmonization of retirement plans across the company for non- contractual employees.

"We are encouraged by our progress and are optimistic about continued improvement in our performance," stated Zollars.

Review of Financial Results

YRC Worldwide Inc. will host a conference call for shareholders and the investment community on Friday, July 25, 2008, beginning at 9:30am ET, 8:30am CT.

Investors and analysts should dial 1.888.609.3912 at least 10 minutes prior to the start of the call. The Conference ID Number is 53899091. The conference call will be open to listeners through a live webcast via StreetEvents at streetevents.com and via the YRC Worldwide Internet site yrcw.com. An audio playback will be available after the call via www.streetevents.com and www.yrcw.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "guidance," and similar expressions are intended to identify forward-looking statements. It is important to note that the company's actual future results and earnings per share could differ materially from those projected in such forward-looking statements because of a number of factors, including (among others) inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company bases its fuel surcharge, competitor pricing activity, expense volatility, including (without limitation) expense volatility due to changes in rail service or pricing for rail service, ability to capture cost reductions, including (without limitation) those cost reduction opportunities arising from acquisitions, changes in equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations, including (without limitation), the impact of work rules, work stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction, and the risk factors that are from time to time included in the company's reports filed with the Securities and Exchange Commission (the "SEC"), including the company's Annual Report on Form 10-K for the year ended December 31, 2007.

YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people.

                    STATEMENTS OF CONSOLIDATED OPERATIONS
                     YRC Worldwide Inc. and Subsidiaries
                  For the Three and Six Months Ended June 30
                 (Amounts in thousands except per share data)
                                 (Unaudited)

                                     Three Months             Six Months
                                   2008        2007        2008        2007

    OPERATING REVENUE          $2,398,728  $2,486,505  $4,631,320  $4,814,847

    OPERATING EXPENSES:
      Salaries, wages and
       employees' benefits      1,332,137   1,464,840   2,685,283   2,886,365
      Operating expenses and
       supplies                   538,664     469,644   1,024,893     911,572
      Purchased transportation    281,938     273,184     536,250     524,952
      Depreciation and
       amortization                63,435      60,345     126,748     119,336
      Other operating expenses    105,803     113,464     218,568     229,788
      (Gains) losses on
       property disposals, net      3,053      (2,788)      6,539         161
      Reorganization and
       settlements                  2,444        (606)     15,228      13,851
        Total operating
         expenses               2,327,474   2,378,083   4,613,509   4,686,025
    OPERATING INCOME               71,254     108,422      17,811     128,822

    NONOPERATING (INCOME)
     EXPENSES:
      Interest expense             18,104      21,766      36,670      41,804
      Other                        (1,863)      2,012      (3,834)        278
        Nonoperating expenses,
         net                       16,241      23,778      32,836      42,082

    INCOME (LOSS) BEFORE
     INCOME TAXES                  55,013      84,644     (15,025)     86,740
    INCOME TAX PROVISION
     (BENEFIT)                     18,739      29,277      (5,424)     30,094
    NET INCOME (LOSS)             $36,274     $55,367     $(9,601)    $56,646

    AVERAGE SHARES
     OUTSTANDING-BASIC             57,122      57,514      57,000      57,426
    AVERAGE SHARES
     OUTSTANDING-DILUTED           58,193      58,511      57,000      58,546
    BASIC EARNINGS (LOSS) PER
     SHARE                          $0.64       $0.96      $(0.17)      $0.99
    DILUTED EARNINGS (LOSS)
     PER SHARE                      $0.62       $0.95      $(0.17)      $0.97



                        SEGMENT FINANCIAL INFORMATION
                     YRC Worldwide Inc. and Subsidiaries
                  For the Three and Six Months Ended June 30
                            (Amounts in thousands)
                                 (Unaudited)

                                                        Three Months
                                                2008         2007         %

    Operating revenue:
       YRC National Transportation          $1,692,842    1,703,455     (0.6)
       YRC Regional Transportation             533,565      604,207    (11.7)
       YRC Logistics                           159,832      158,203      1.0
       YRC Truckload                            31,520       30,747      2.5
       Eliminations                            (19,031)     (10,107)
       Consolidated                          2,398,728    2,486,505     (3.5)

    Operating income (loss):
       YRC National Transportation              74,559       92,750    (19.6)
       YRC Regional Transportation               2,136       15,593    (86.3)
       YRC Logistics                             1,874        1,537     21.9
       YRC Truckload                            (3,938)        (806)     n/m
       Corporate and other                      (3,377)        (652)
       Consolidated                            $71,254      108,422    (34.3)

    Operating ratio:
       YRC National Transportation               95.6%        94.6%
       YRC Regional Transportation               99.6%        97.4%
       YRC Logistics                             98.8%        99.0%
       YRC Truckload                            112.5%       102.6%
       Consolidated                              97.0%        95.6%

    (Gains) losses on property disposals, net:
       YRC National Transportation              $3,064      $(5,091)
       YRC Regional Transportation                (686)         279
       YRC Logistics                                (6)          13
       YRC Truckload                               693        1,211
       Corporate and other                         (12)         800
       Consolidated                              3,053       (2,788)

    (Gains) losses on reorganization and
     settlements:
       YRC National Transportation                 344            -
       YRC Regional Transportation               1,829          285
       YRC Logistics                               271        2,583
       YRC Truckload                                 -            -
       Corporate and other                           -       (3,474)
       Consolidated                             $2,444        $(606)


                                                         Six Months
                                                2008         2007         %

    Operating revenue:
       YRC National Transportation          $3,252,688    3,311,899     (1.8)
       YRC Regional Transportation           1,046,019    1,155,731     (9.5)
       YRC Logistics                           309,585      307,940      0.5
       YRC Truckload                            57,058       61,307     (6.9)
       Eliminations                            (34,030)     (22,030)
       Consolidated                          4,631,320    4,814,847     (3.8)

    Operating income (loss):
       YRC National Transportation              67,314      125,876    (46.5)
       YRC Regional Transportation             (35,499)      10,232      n/m
       YRC Logistics                               795          467     70.2
       YRC Truckload                            (8,989)        (454)     n/m
       Corporate and other                      (5,810)      (7,299)
       Consolidated                            $17,811      128,822    (86.2)

    Operating ratio:
       YRC National Transportation               97.9%        96.2%
       YRC Regional Transportation              103.4%        99.1%
       YRC Logistics                             99.7%        99.8%
       YRC Truckload                            115.8%       100.7%
       Consolidated                              99.6%        97.3%

    (Gains) losses on property disposals, net:
       YRC National Transportation              $4,173      $(4,372)
       YRC Regional Transportation               1,006          447
       YRC Logistics                                61          (24)
       YRC Truckload                               971        2,071
       Corporate and other                         328        2,039
       Consolidated                              6,539          161

    (Gains) losses on reorganization and
     settlements:
       YRC National Transportation               2,075        6,082
       YRC Regional Transportation              12,882        5,791
       YRC Logistics                               271        2,697
       YRC Truckload                                 -            -
       Corporate and other                           -         (719)
       Consolidated                            $15,228      $13,851



                           Selected Financial Data
                     YRC Worldwide Inc. and Subsidiaries
                (Amounts in thousands unless otherwise noted)
                                 (Unaudited)

                                             For the Six Months Ended June 30,
                                                      2008              2007
    Net cash provided by operating
     activities                                   $110,587          $162,903
    Net cash used in investing activities          (70,140)         (214,024)
    Net cash (used in) provided by
     financing activities                          (37,356)           31,405
    Gross capital expenditures                     (77,018)         (241,860)
    Net capital expenditures                       (65,939)         (213,921)
    Proceeds from exercise of stock options             50             6,405
    Free cash flow (a)                              44,698           (44,613)


                                                   June 30,      December 31,
                                                      2008              2007
    Cash and cash equivalents                      $61,324           $58,233
    Accounts receivable, net                     1,116,081         1,073,915
    Net property and equipment                   2,314,899         2,380,473
    Total assets                                 5,019,480         5,062,623
    Asset backed securitization
     borrowings                                    140,000           180,000
    Current maturities of long-term debt           331,295           231,955
    Long-term debt, less current portion           723,790           822,048
    Total debt                                   1,195,085         1,234,003
    Total shareholders' equity                   1,607,070         1,612,304
    Debt to capitalization (b)                       42.6%             43.4%


    (a) Management uses free cash flow as an indication of the cash available
        to fund additional capital expenditures, to reduce outstanding debt
        (including current maturities), or to invest in our growth strategies.
        Free cash flow is calculated as net cash from operating activities
        plus stock option proceeds less net capital expenditures.  This
        measurement is used for internal management purposes and should not be
        construed as a better measurement than net cash from operating
        activities as defined by generally accepted accounting principles.
    (b) We calculate debt to capitalization as total debt divided by total
        debt plus total shareholders' equity.

SOURCE: YRC Worldwide Inc.