Subscribe to our free, weekly email newsletter!


YRC takes steps in right direction with second quarter earnings results

By Jeff Berman, Group News Editor
August 03, 2012

Based on today’s second quarter earnings announcement from less-than-truckload (LTL) transportation services provider YRC Worldwide, business conditions are continuing to gradually improve for the Overland Park, Kan.-based carrier.

YRC reported that its quarterly consolidated operating revenue—at $1.251 billion—was down 0.5 percent annually. And consolidated operating income came in at $15.5 million and included a $6.5 million gain on asset disposals. YRC officials said this is the first time since the third quarter of 2008 the company has reported income from operations—except for the second quarter of 2010, which included an $83 million non-cash reduction to its equity-based compensation expense—which is another step in the right direction for the company, which has lost more than 2.6 billion in the last five years.

Quarterly EBITDA at $70.1 million was up $5.6 million over $64.5 million in the second quarter of 2011.

“Our focused approach to pricing discipline, customer mix management and cost initiatives has driven year-over-year improvement in our business, which is reflected in our operating income,” said James Welch, chief executive officer of YRC Worldwide, in a statement. “We are producing results slightly ahead of our forecast, despite the recently softening economy, and remain focused on executing our operations and sales strategies at all operating companies.  We continue to be committed to delivering consistent, high-quality and cost-effective service for our customers and value for our stakeholders.”

Operating revenue for YRC Regional Transportation, improved by 7.0 percent to $429.8 million. Tonnage per day was up 4.4 percent year-over-year, shipments per day were up 2.5 percent, revenue per hundredweight was up 2.4 percent, and revenue per shipment was up 4.3 percent.

At YRC Freight, which was re-named from YRC National Transportation in early February, operating revenue dipped 0.7 percent to $821.1 million. Daily tonnage was up 3.3 percent and revenue per hundredweight was up 2.9 percent. Daily shipments were up 4.3 percent, and revenue per shipment was up 1.7 percent.

Welch said that YRC Freight is actively managing its customer mix with improved pricing discipline, which is paying off in both sequential and annual improvements even though operating revenue was down slightly. He added that the unit is increasing efficiencies in its network and improving customer service through significant enhancements to increase the speed in its more than 24,000 lanes within its North America-based LTL network.

Pricing discipline is continuing to take hold in the LTL sector. As LM has reported, a common theme for LTL carriers during earnings season is revenue per shipment is on the rise in tandem with pricing gains.

 

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Last week, the United States Department of Transportation took further steps to address various issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The announcement was made by DOT with other DOT agencies, including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Logistics Management Group News Editor Jeff Berman had an opportunity to interview Derek Leathers, President and Chief Operating Officer of Werner Enterprises, at this month's NASSTRAC Shippers Conference and Transportation Expo in Orlando. They discussed various aspects of the truckload market, including prices, fuel, and regulations.

During this webcast our presenters will apply the findings of the 23rd Annual Trends & Issues in Transportation and Logistics Study to the world of shipper-carrier decision making. They'll examine the primary aspects that will influence the future direction for shipper-carrier decision-making.

For February, the month for which most recent data is available, the SCI dropped to -1.0 from January’s 2.6, with FTR explaining that the short term positive impact from one-time adjustments for rapidly dropping diesel prices and the suspension of the 2013 motor carriers hours-of-service expires later this year.

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Article Topics

News · LTL · YRC Worldwide · YRC · YRC Freight · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA