YRC takes steps in right direction with second quarter earnings results

By Jeff Berman, Group News Editor
August 03, 2012 - LM Editorial

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

The year 2015 marks a major milestone for the industry, MHI is celebrating its 70th anniversary at ProMat 2015, held March 23-26, 2015.

While the Federal Motor Carrier Safety Administration has made strides in regards to better oversight of motor carriers through its Compliance, Safety, Accountability (CSA) and chameleon vetting safety programs, there is room for improvement for it to improve its oversight to better target high-risk carriers. That was the thesis of a report released this week by the United States General Accountability Office

With an eye on capitalizing on future trade and commerce growth in South Asia, express delivery and logistics services provider DHL today rolled out its plans to build an $85 million EUR ($93 million USD) DHL Express South Asia Hub, which will be a 24-hour express hub facility within the Changi Airfreight Center at the Singapore Changi Airport.

While the Federal Railroad Administration (FRA) has long stated its goal of having Positive Train Control (PTC) technology installed on 40 percent of its network by December 31, 2015, railroad industry stakeholders have repeatedly stated that reaching that deadline would be a stretch. It now appears that the railroad sector has some members of Congress sharing the same line of thought with legislation rolled out this week that pledges to extend the PTC deadline to 2020.

West Coast port authorities may be overstating the obvious when they decry “business as usual.” But it’s refreshing to see them finally coming around.

Article Topics

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

About the Author

Jeff Berman, 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. Contact Jeff Berman.

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