YRC Worldwide Earns Operating Profit

YRC Worldwide Earns Operating Profit


William B. Cassidy, Senior Editor | Aug 3, 2012 2:00PM GMT
The Journal of Commerce Online - News Story
LTL
| Economy
| Trucking
| North America
| United States





First operating profit from freight since 2008 on $1.25 billion in second quarter revenue

Trucking giant YRC Worldwide reported an operating profit of $15.5 million in the second quarter while cutting its net loss 47 percent to $22.6 million.

The $15.5 million gain is the $4.9 billion less-than-truckload operator’s first operating profit attributable to freight operations since the third quarter of 2008.

“We are producing results slightly ahead of our forecast, despite the recently softening economy,” James Welch, YRC Worldwide CEO, said in a statement Friday.

“Our focused approach to pricing discipline, customer mix management and cost initiatives has driven year-over-year improvement in our business,” he said.

YRC’s regional carrier group, which includes Holland, New Penn Motor Express and Reddaway, increased its operating profit by 55.7 percent to $22.9 million.

The regional carrier group increased revenue 7 percent year-over-year to $429.8 million as tonnage rose 4.4 percent and shipments, 2.5 percent.

“Holland, New Penn and Reddaway are increasing market share and leveraging their operational improvements to enhance profitability,” Welch said.

At long-haul LTL carrier YRC Freight, tonnage and shipments dropped 3.3 percent and 2.1 percent from a year ago. The carrier had a $5.1 million operating loss.

YRC Freight completed a network reorganization in the second quarter designed to speed freight to receivers with less handling and reduce transit times.

YRC Worldwide ended the quarter with $248.7 million in liquidity, the company’s best second-quarter liquidity level since 2008, CFO Jamie Pierson said.

The holding company reduced its “cash burn” from operating activities by $44.7 million year-over-year, despite higher interest and pension expenses, he said.