YRC Worldwide generated $52.2 million of cash from operating activities during the quarter and, when taking into account the $40.4 million of cash inflow from net capital expenditures, third quarter free cash flow was $92.6 million. The company's leverage ratio of total debt to trailing twelve months earnings before interest, taxes, depreciation and amortization, or EBITDA, (as those terms are defined in the company's credit facilities) was 3.18 times against a limit of 3.75 times for the third quarter 2008. As of December 31, 2008, through the remaining term of the credit facilities, the leverage ratio limitation is 3.5 times. Total balance sheet debt was reduced by $11.4 million for the third quarter and $50.3 million since December 31, 2007.

"Throughout the third quarter, the operating environment progressively weakened resulting in lower than expected volumes and more competitive pricing," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Although the economy slowed more than we expected during the quarter, we still generated solid free cash flow and paid down debt, in addition to removing significant cost from our business," Zollars added.

Segment Information

Key segment information for the third quarter 2008 included:

-- YRC National Transportation LTL revenue per hundredweight up 6.3% from third quarter 2007 and LTL tonnage per day down 9.0%.

-- YRC Regional Transportation LTL revenue per hundredweight up 5.3% from third quarter 2007 and LTL tonnage per day down 17.2%.

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

Outlook

"We are focused on adapting to weaker economic conditions while still providing quality service to our customers. Although improved efficiencies and enhanced service are the key drivers of the Yellow and Roadway integration, the expected cash flows from additional facility sales and further reducing capital expenditures are incremental benefits that should significantly improve our liquidity," Zollars stated. "We also remain confident in our ability to deliver a run rate of at least $200 million of operating income improvement by the end of 2009 from the integration."

Due to the uncertainty in the economy, the company does not intend to provide specific earnings guidance for the fourth quarter. However, the company currently has the following expectations for the remainder of 2008:

-- Fourth quarter tax rate of around 36.5%, excluding any non-cash impairment charge.

-- Reduction in total debt by at least $100 million in the fourth quarter resulting in a reduction of more than $150 million for 2008.

-- Full year gross capital expenditures of between $150 to $175 million and full year proceeds from asset sales of at least $100 million resulting in net capital expenditures of $50 to $75 million.

"We plan to generate a healthy amount of cash flow in the fourth quarter and further strengthen our balance sheet by year end. With our current action plans, we expect to maintain a leverage ratio below 3.5 times," Zollars concluded.

Review of Financial Results

YRC Worldwide Inc. (Nasdaq: YRCW) will host a conference call for shareholders and the investment community on Friday, October 24, 2008, beginning at 9:00am ET, 8:00am CT.

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 also be available after the call via StreetEvents and the YRC Worldwide web sites.

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," "plan," "should," "will," "remain confident" and similar expressions are intended to identify forward-looking statements. It is important to note that the company's actual future results 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.

The company's expectations regarding any potential impairment charges are only its expectations regarding whether impairment exists. The company, along with its third-party appraisal firm, is finalizing the valuations of the company's assets. The results of the appraisals will determine whether impairment exists and the magnitude of any charges resulting from impairment.

The company's expectations regarding its operating income improvement due to the integration of Yellow Transportation and Roadway and the timing of achieving that improvement could differ materially from those projected in such forward-looking statements based on a number of factors, including (among others) the factors identified in the immediately preceding paragraphs, the ability to identify and implement cost reductions in the time frame needed to achieve these expectations, the success of the company's operating plans, the need to spend additional capital to implement cost reduction opportunities, including (without limitation) to terminate, amend or renegotiate prior contractual commitments, the accuracy of the company's estimates of its spending requirements, changes in the company's strategic direction and the need to replace any unanticipated losses in capital assets.

The company's expectations regarding its effective tax rate are only its expectations regarding this rate. The actual rate could differ materially based on a number of factors, including (among others) variances in pre-tax earnings on both a consolidated and business unit basis, variance in pre-tax earnings by jurisdiction, impacts on our business from the factors described above, variances in estimates on non-deductible expenses, tax authority audit adjustments, change in tax rates and availability of tax credits.

The company's expectations regarding its debt reduction, liquidity, and leverage ratio are only the company's expectations regarding these items. The company's actual debt reduction, liquidity and leverage ratio could be affected by a number of factors, including (among others) the factors identified in the preceding paragraphs, the timing of the company's cash receipts and expenditures, the lack of any unanticipated liabilities maturing, contingent or otherwise, the company's retirement of existing debt obligations at less than par, the ability of the company to timely sell and receive the proceeds from sales of assets (in particular and without limitation) sales of real property, and the ability of the company to sell equity or exchange equity for debt and the availability of markets for these kinds of transactions.

The company's expectations regarding its gross capital expenditures, asset sales and free cash flow are only its expectations regarding these items. Actual expenditures, asset sales and free cash flow could differ materially based on a number of factors, including (among others) the factors identified in the preceding paragraphs.

The company's expectation regarding its compliance with the company's credit agreement is only the company's expectation regarding such compliance. The ability of the company to comply with the terms of its credit agreement could be affected by a number of factors, including (among others) the factors identified in the preceding paragraphs, the timing of the company's cash receipts and expenditures, technical compliance with the requirements of the agreement, and the lack of any unanticipated liabilities maturing, contingent or otherwise.

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 58,000 people.

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

                                     Three Months            Nine Months
                                   2008        2007        2008        2007

    OPERATING REVENUE          $2,380,258  $2,457,731  $7,011,578  $7,272,578

    OPERATING EXPENSES:
      Salaries, wages and
       employees' benefits      1,309,759   1,447,409   3,995,042   4,333,774
      Operating expenses and
       supplies                   538,048     463,623   1,562,941   1,375,195
      Purchased transportation    303,221     286,460     839,471     811,412
      Depreciation and
       amortization                67,808      62,232     194,556     181,568
      Other operating expenses    103,165     109,153     321,733     338,941
      (Gains) losses on
       property disposals, net    (15,466)      1,400      (8,927)      1,561
      Reorganization and
       settlements                  7,280        (197)     22,508      13,654
        Total operating
         expenses               2,313,815   2,370,080   6,927,324   7,056,105

    OPERATING INCOME               66,443      87,651      84,254     216,473

    NONOPERATING (INCOME)
     EXPENSES:
      Interest expense             20,334      22,715      57,004      64,519
      Other                        (1,029)        979      (4,863)      1,257
        Nonoperating expenses,
         net                       19,305      23,694      52,141      65,776

    INCOME BEFORE INCOME TAXES     47,138      63,957      32,113     150,697
    INCOME TAX PROVISION           10,530      23,213       5,106      53,307

    NET INCOME                    $36,608     $40,744     $27,007     $97,390

    AVERAGE SHARES
     OUTSTANDING-BASIC             57,317      57,116      57,106      57,322
    AVERAGE SHARES
     OUTSTANDING-DILUTED           58,319      57,981      58,083      58,186
    BASIC EARNINGS PER SHARE        $0.64       $0.71       $0.47       $1.70
    DILUTED EARNINGS PER SHARE      $0.63       $0.70       $0.47       $1.68



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

                                                   Three Months
                                                2008          2007         %
    Operating revenue:
       YRC National Transportation          $1,693,675    $1,708,984     (0.9)
       YRC Regional Transportation             509,492       580,061    (12.2)
       YRC Logistics                           165,312       152,919      8.1
       YRC Truckload                            33,311        26,059     27.8
       Eliminations                            (21,532)      (10,292)
       Consolidated                          2,380,258     2,457,731     (3.2)

    Operating income (loss):
       YRC National Transportation              62,261        90,375    (31.1)
       YRC Regional Transportation               1,655           531      n/m
       YRC Logistics                             6,967         4,186     66.4
       YRC Truckload                            (1,433)       (1,777)    19.4
       Corporate and other                      (3,007)       (5,664)
       Consolidated                            $66,443       $87,651    (24.2)

    Operating ratio:
       YRC National Transportation                96.3%         94.7%
       YRC Regional Transportation                99.7%         99.9%
       YRC Logistics                              95.8%         97.3%
       YRC Truckload                             104.3%        106.8%
       Consolidated                               97.2%         96.4%


    (Gains) losses on property disposals,
     net:
       YRC National Transportation             $(5,385)        $(588)
       YRC Regional Transportation              (3,850)         (135)
       YRC Logistics                            (6,187)          (86)
       YRC Truckload                               (44)          (89)
       Corporate and other                           -         2,298
       Consolidated                            (15,466)        1,400

    (Gains) losses on reorganization and
     settlements:
       YRC National Transportation               4,338             -
       YRC Regional Transportation                 307         1,289
       YRC Logistics                             2,108            14
       YRC Truckload                                 5             -
       Corporate and other                         522        (1,500)
       Consolidated                             $7,280         $(197)



                                                   Nine Months
                                               2008          2007         %
    Operating revenue:
       YRC National Transportation          $4,946,363    $5,020,883     (1.5)
       YRC Regional Transportation           1,555,511     1,735,792    (10.4)
       YRC Logistics                           474,897       460,859      3.0
       YRC Truckload                            90,369        87,366      3.4
       Eliminations                            (55,562)      (32,322)
       Consolidated                          7,011,578     7,272,578     (3.6)

    Operating income (loss):
       YRC National Transportation             129,575       216,251    (40.1)
       YRC Regional Transportation             (33,844)       10,763      n/m
       YRC Logistics                             7,762         4,653     66.8
       YRC Truckload                           (10,422)       (2,231)     n/m
       Corporate and other                      (8,817)      (12,963)
       Consolidated                            $84,254      $216,473    (61.1)

    Operating ratio:
       YRC National Transportation                97.4%         95.7%
       YRC Regional Transportation               102.2%         99.4%
       YRC Logistics                              98.4%         99.0%
       YRC Truckload                             111.5%        102.6%
       Consolidated                               98.8%         97.0%


    (Gains) losses on property disposals,
     net:
       YRC National Transportation             $(1,212)      $(4,960)
       YRC Regional Transportation              (2,844)          312
       YRC Logistics                            (6,126)         (110)
       YRC Truckload                               927         1,982
       Corporate and other                         328         4,337
       Consolidated                             (8,927)        1,561

    (Gains) losses on reorganization and
     settlements:
       YRC National Transportation               6,413         6,083
       YRC Regional Transportation              13,189         7,080
       YRC Logistics                             2,379         2,711
       YRC Truckload                                 5             -
       Corporate and other                         522        (2,220)
       Consolidated                            $22,508       $13,654



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

                                                   For the Nine Months Ended
                                                           September 30,
                                                      2008              2007

    Net cash from operating activities            $162,815          $205,936
    Net cash used in investing activities          (64,344)         (283,359)
    Net cash (used in) provided by
     financing activities                          (54,081)          206,229
    Gross capital expenditures                    (104,402)         (313,474)
    Net capital expenditures                       (25,606)         (281,940)
    Proceeds from exercise of stock
     options                                            50             6,530
    Free cash flow (a)                             137,259           (69,474)


                                             September 30,       December 31,
                                                      2008              2007

    Cash and cash equivalents                     $102,623           $58,233
    Accounts receivable, net                     1,095,184         1,073,915
    Net property and equipment                   2,234,887         2,380,473
    Total assets                                 4,983,709         5,062,623
    Asset backed securitization
     borrowings                                    142,000           180,000
    Current maturities of long-term debt             3,500           231,955
    Long-term debt, less current portion         1,038,215           822,048
    Total debt                                   1,183,715         1,234,003
    Total shareholders' equity                   1,660,633         1,612,304
    Debt to capitalization (b)                        41.6%             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.