YRCW shows more signs of improvement in Q1 results

The Overland Park, Kan.-based carrier reported that its quarterly consolidated operating revenue—at $1.194 billion—was up 6.4 percent annually, while its consolidated operating loss—of $48.8 million—included an $8.4 million loss on asset disposals.

By ·

Slow and gradual improvement trends remained intact for less-than-truckload (LTL) transportation services provider YRC Worldwide in its first quarter earnings statement, which was released today.

The Overland Park, Kan.-based carrier reported that its quarterly consolidated operating revenue—at $1.194 billion—was up 6.4 percent annually, while its consolidated operating loss—of $48.8 million—included an $8.4 million loss on asset disposals.

Today’s earnings release follows an announcement made by the company on Monday, when it stated that it reached agreements with its lenders to reset certain financial covenants over the life of millions of dollars worth of loans. YRC said its lenders agreed to allow the carrier to retain all proceeds from the auction of certain surplus properties and terminals. YRC added that new lending agreements were supported by all of its term credit agreement lenders and all of its ABL credit agreement lenders.

YRC has lost more than $2.6 billion in the last five years.

“We are experiencing increased efficiencies at each of our operating companies,” said James Welch, chief executive officer of YRC Worldwide, in a statement. “Our employees are responding extremely well to our operating changes to regain a leading position in the LTL industry. This is an exciting time at YRCW as our team now has the financial flexibility and the tools to take this business to the next level. Our plan is to continue building on this positive momentum throughout 2012 with the determination of delivering consistent, high-quality service that is both reliable and cost effective. The feedback we’re getting is that our operating companies are providing the service levels our customers expect, and they are rewarding us with increased levels of business as our first quarter results indicate.”

Operating revenue for YRC Freight, which was re-named from YRC National Transportation in early February, improved by 8.1 percent to $789.1 million. Tonnage per day at YRC Freight was up 3.5 percent year-over-year, shipments were up 2.8 percent, revenue per hundredweight was up 3.3 percent, and revenue per shipment was up 4.0 percent.

YRC Regional’s operating revenue was up 9.8 percent to $402.0 million. Daily tonnage was up 6.0 percent and revenue per hundredweight was up 4.5 percent. Daily shipments were up 4.3 percent, and revenue per shipment was up 6.2 percent.

Since the depths of the recession in 2009, when LTL carriers ostensibly lost much of its pricing power, the pendulum has been slowly working its way back into the favor of LTL carriers. While YRCW has a ways to go still before it is financially solvent, this quarterly performance continues a positive trend in that its losses in recent quarters continue to narrow.

At this week’s NASSTRAC Logistics Conference and Expo in Orlando, John Barnes, transportation analyst at RBC Capital Markets, said that overall LTL market conditions are recovering.

“What a difference a year makes,” said Barnes. “Things have gotten modestly better. LTL tonnage is up higher compared to truckload year-to-date. I anticipate volumes [in 2012] will be in the 4-to-5 percent range, as LTL recovers market share from other modes of transportation.”


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!

Article Topics

LTL · YRC · YRC Freight · YRC Worldwide · All Topics
Latest Whitepaper
Digital Issue: The Current State of Third-Party Logistics Services
It has become quite clear that logistics professionals are now facing an unprecedented set of challenges. From tightening capacity, to ongoing regulation hurdles, to the complexity brought on by e-commerce, today’s shippers are transforming the way they manage their logistics operations.
Download Today!
From the June 2017 Issue
Here are five trends that every shipper­—and potential shipper—must watch as the demand for experienced logistics and supply chain professionals soars.
2017 Rail/Intermodal Roundtable: Volume stable, business steady
Cross-Border Logistics: NAFTA tune-up time
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Women in Logistics: Breaking Gender Roles to Win the War for Talent
In this session you'll hear from a panel of women who are now leading top-level logistics and supply chain operations. The panel will share their success stories as well as advice for women who are now making their way up the ladder.
Register Today!
EDITORS' PICKS
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...