UPDATE 3-Trucker YRC posts bigger-than-expected qtrly loss

* Qtrly loss of $2.67, versus analysts' view of $1.70 loss

* Says operating cash flow trends improve in quarter

* Cites benefits of new long-term bank amendment

* Cut 900 non-union workers

* Shares drop 7.9 percent (Adds byline, details, share movement, comments)

By Carey Gillam

OVERLAND PARK, Kan., Oct 30 (Reuters) - U.S. trucking giant YRC Worldwide Inc (YRCW.O: Quote, Profile, Research) posted a bigger-than-expected quarterly loss on Thursday but said it was making progress on a financial restructuring as shipping trends stabilized.

YRC posted a third-quarter loss of $158.74 million, or $2.67 per share, compared with a loss of $720.88 million, or $12.58 per share, a year earlier.

Analysts, on average, expected a loss of $1.70 per share, according to Thomson Reuters I/B/E/S.