Subscribe to our free, weekly email newsletter!


YRCW shows more signs of improvement in Q1 results

By John D. Schulz, Contributing Editor and Jeff Berman, Group News Editor
May 03, 2012

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.”

About the Author

John D. Schulz, Contributing Editor and Jeff Berman, Group News Editor

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

“U.S. Port Update: Investing in the Future” will feature a panel of three industry leaders from the East Coast, Gulf, and West Coast discussing their relative challenges and opportunities.

Zebra gains instant access to complimentary technologies. But first, it needs to integrate a former partner that is 2-1/2 times its size.

The U.S. Army Corps of Engineers issued a final Chief’s Report approving the Jacksonville Harbor Deepening Project, clearing the way for congressional authorization in an upcoming Water Resources Development Act.

Logistics Management Group News Editor Jeff Berman recently caught up with Doug Waggoner, CEO of Echo Global Logistics, a non-asset based freight brokerage company and a provider of technology-enabled transportation and supply chain management services on various topics impacting freight transportation and logistics.

Carloads—at 295,294—were up 7.2 percent annually, and intermodal trailers and containers were up 9.3 at 264,382.

Article Topics

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

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA