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

Seasonally-adjusted (SA) for-hire truck tonnage in November was up 3.5 percent compared to October, which was up 0.5 percent over September at 136.8 (2000=100), marking the highest SA on record.

UPS said that through this acquisition it will augment its healthcare expertise and network in Europe, specifically in the fast growing healthcare markets in Central and Eastern Europe.

Carloads were up 12.1 percent at 312,271, and intermodal at 280,337 containers and trailers saw a 4.5 percent annual gain.

Total November POLB volumes were up 2.1 percent year-over-year at 581,514 TEU, and POLA volumes in November decreased 3 percent compared to November 2013 at 663,346 TEU.

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

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