Dahlman Rose Reiterates Hold Rating on YRC Worldwide (YRCW, ABFS)

Dahlman Rose & Company is out with a research report this morning, where it reiterates its Hold rating on YRC Worldwide YRCW; it did not provide a price target for on the stock. The DR analysts said that, despite an improving LTL carrier environment, tight driver market, and YRCW's seemingly perpetual relapses into financial trouble, the Teamsters have granted the carrier another concession. Union members voted to approve the latest plan proposed by YRC Worldwide, thereby accepting concessions intended to sustain the viability of the LTL carrier into 2011. The analysts noted that YRC Worldwide's success in keeping wage cuts in place underscores a harsh reality for another LTL carrier, Arkansas Best Corp. ABFS, which continues to have the highest employment cost in the industry. That said, given the Teamsters' favorable vote for YRC Worldwide, the analysts would not be surprised if its Arkansas-based counterpart revisits its own proposed concessions.