YRC Reports Positive Numbers For A Change
February 10, 2013
The parent of trucking companies YRC Freight and others, YRC Worldwide, has posted its first positive yearly numbers in six years, but things overall still need improvement in order to forget the company coming close to bankruptcy more than once in recent years.
Consolidated operating revenue 2012 was $4.85 billion, 0.4% lower than 2011, but consolidated operating income increased $162.3 million to $24.1 million.
This is the first time in six years that the company has reported positive annual consolidated operating income. This compares to operating revenue of $4.869 billion for 2011 and a consolidated operating loss of $138.2 million.
Despite this, YRC still posted a net loss of $140.4 million dollars last year, compared to $351.3 million in 2011.
"Our year-over-year operating improvement is primarily due to our focus on customer mix management, pricing discipline, productivity improvements, and a decrease in safety related costs," said James Welch, chief executive officer of YRC Worldwide.
"In just 18 months after a complete restructuring of the senior leadership team, the company posted positive consolidated operating income for the first time in six years and exceeded our forecast for the year.
"Obviously, 2012 was a year of significant progress for the organization. We eliminated all distractions that have been keeping this company from focusing on what we do best, which is providing premium services to both the regional and long-haul segments of the LTL market."
Consolidated operating revenue for the fourth quarter of 2012 was $1.169 billion, 3.6% lower than 2011, but consolidated operating income increased $68.1 million to $30.0 million. This is the third consecutive quarter that the company has reported income from operations. This compared with consolidated operating revenue of $1.212 billion for the fourth quarter of 2011 and a consolidated operating loss of $38.1 million, which included a $12.9 million loss on asset disposals.
The company also reported a net loss for the quarter of $35.3 compared to a loss of $84.2 million the same time a year earlier.
YRC Freight recorded $21.1 million in positive operating income in the fourth quarter which was a $47.8 million year-over-year increase and the second consecutive positive operating income quarter.
"During the fourth quarter of 2012, our regional group [Holland, Reddaway and New Penn] continued to deliver solid results," stated Welch. "Our regional group delivered full-year operating income of $70 million and a 95.7 operating ratio, which led the way for our company Holland, Reddaway and New Penn teams," Welch said.
Investors were obviously impressed by the results with YRC stock picking up nearly 6% on Friday, closing at $6.81 per share.